Suppose there is a policy debate regarding the United States imposing trade restrictions on imported steel rods.Read the following scenario and answer the question that follows.A congresswoman from a state with several steel-rod factories explains that it is necessary to impose trade restrictions, suchon the steel-rod industry to protect workers in the domestic steel-rod industry. The congresswoman claims that without tradethere will be layoffs, causing many U.S. workers in the steel-rod industry to become unemployed.hich of the following justifications is the congresswoman using to argue for the trade restriction on steel rods?O Unfair-competition argumentOJobs argumentInfant-industry argumentNational-security argumentWImm

Answered: Eh of the following justifications is…

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 1CQQ

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Suppose there is a policy debate regarding the United States imposing trade restrictions on imported steel rods.
Read the following scenario and answer the question that follows.
A congresswoman from a state with several steel-rod factories explains that it is necessary to impose trade restrictions, such
on the steel-rod industry to protect workers in the domestic steel-rod industry. The congresswoman claims that without trade
there will be layoffs, causing many U.S. workers in the steel-rod industry to become unemployed.
hich of the following justifications is the congresswoman using to argue for the trade restriction on steel rods?
O Unfair-competition argument
OJobs argument
Infant-industry argument
National-security argument
W
Imm

Expert Solution

Step 1.

The unfair competition argument states that if imported goods are sold at a lower price than domestically made goods, it is unfair competition, so domestic import-competing industry should be protected by restricting trade.

The job argument says that lower-priced imported goods causes job loss in domestic import-competing industry, so trade should be restricted.

Infant industry argument says that if domestic import-competing industry is in a nascent stage, imports will burden them so they should be protected by restricting trade.

National security argument says that import of certain goods will be a threat to national security, so trade should be restricted.

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