Question

The arguments for restricting trade

Answer 1

Answer: (A) Unfair competition argument

Explanation:

  The unfair competition argument is one of the type of common argument that helps in applying while taking various types of unfair decisions in an organization.

It is one of the intellectual branch that basically substitute the competitor's products and the items in the market by using the deceiving techniques or methods.

According to the given question, Lobbyist is basically using the various types of Unfair competition arguments for the purpose of argue for the trading restriction on the steel rods as the foreign producers are using their unfair benefits over the domestic manufactures.      

Therefore, Option (A) is correct answer.

Answer 2

Answer:

a. Unfair competition argument

Explanation:

With regards to decision about restriction on imported steel rods : Domestic producers, lobbyists state that they should levy trade restrictions, as producers in other countries receive subsidies to export steel rods and that domestic suppliers can't compete in the international marketplace.

The above statement highlights the aspect of 'Unfair Trade Competition'. Such because other countries giving subsidies to their steel rod producers decrease market price of steel rods. This makes their (other countries) steel rods cheaper & make them gain competitive advantage in both their domestic & global markets. So, US steel rods lose their competitiveness in both their domestic market (if cheaper imports enter their market) & in other countries (having cheaper subsidised steel rods).