Asked by Brooke Rupert on May 07, 2024
Verified
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.
Verified Answer
NN
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.
Learning Objectives
- 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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