Asked by Brooke Rupert on May 07, 2024

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Which of the following arguments for trade protection is based on the premise that a nation should have a wide enough range of domestic industries to be self-sufficient if necessary?

A) the increased domestic employment argument
B) the cheap foreign labor argument
C) the diversification-for-stability argument
D) the infant industry argument

Diversification-for-Stability

A strategy aiming to reduce risk by allocating investments among various financial instruments, industries, or other categories.

Self-sufficient

The ability of an entity or individual to meet all of its needs without external assistance.

  • Gain insight into the pros and cons of trade protection, highlighting the arguments related to budding industries, national defense, and employment ramifications.
  • Analyze trade policies' effects on wide industry ranges, emphasizing self-sufficiency and national security.
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Verified Answer

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nothando nhlanhloMay 09, 2024
Final Answer :
C
Explanation :
The diversification-for-stability argument supports trade protection on the basis that a nation should maintain a diverse range of domestic industries to ensure self-sufficiency and stability, especially in times of international crises or trade disruptions. This approach emphasizes the importance of not being overly reliant on imports for critical goods and services.