Question

A senator from a state with several ball-bearing factories argues that the United States should threaten to impose a tariff on Chinese ball bearings in order to induce the Chinese to remove its tariff on American cars.
A. Unfair-competition argument
B. using-protection-as-a-bargaining-chip argument
C. Infant-industry argument
D. National security argument
E. Jobs argument

Answer 1

Answer:

The correct option is B,using-protection-as-a-bargaining-chip argument

Explanation:

Using protection-as-a-bargaining-chip argument is a retaliatory strategy used in international trade where a country that is at the receiving end of a trade restriction such as tariff imposition attempts to impose or imposes similar restriction on a trading partner in order that the trading partner can relax their restrictions or lead both trading partners to begin another round of discussion.

Specifically, the suggestion made the congressman as highlighted is one of the ways to use protection-as-a-bargaining-chip argument