Suppose there is a policy debate regarding the United States\' imposing trade re

Question

Suppose there is a policy debate regarding the United States' imposing trade restrictions on imported tires: Domestic producers of tires send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of tires. The lobbyist claims that the U.S. tire industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on tires, the domestic tire industry could mature and adjust and would eventually be able to compete in the world market. Which of the following justifications is the lobbyist using to argue for the trade restriction on tires? Infant industry argument Using-protection-as-a-bargaining-chip argument Jobs argument Unfair-competition argument National-security argument

Explanation / Answer

Answer:-  Infant-industry argument

Explanation:- The lobbyist claims before the government that U.S. Tire industry is new and thus can not compete with foreign companies. Accordingly, domestic producers of tires need protection from government. This argument made by lobbyist is basically infant-industry argument (i.e., new industry /firm unable to compete with old existing firm/industry and thus need help of government by way of protection from the country's government against foreign competiton.)

Conclusion:- Infant-industry argument (Option 1)

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