Supporters of the jacket quota over free trade argue that the trade restriction will save jobs in the United States. What are the potential pitfalls of such an argument? Check all that apply. China may retaliate, imposing restrictions on their imports from the United States, thereby generating unemployment in U.S. export industries. Consumers will likely divert large amounts of scarce resources toward lobbying for the removal of the quota. Trade restrictions simply reshuffle jobs by increasing employment in the protected industry and reducing employment in other industries. The costs to domestic jacket consumers may outweigh the benefits of jobs saved in the jacket industry.
Supporters of the jacket quota over free trade argue that the trade restriction will save jobs in the United States. What are the potential pitfalls of such an argument? Check all that apply. China may retaliate, imposing restrictions on their imports from the United States, thereby generating unemployment in U.S. export industries. Consumers will likely divert large amounts of scarce resources toward lobbying for the removal of the quota. Trade restrictions simply reshuffle jobs by increasing employment in the protected industry and reducing employment in other industries. The costs to domestic jacket consumers may outweigh the benefits of jobs saved in the jacket industry.
Chapter18: International Trade And Comparative Advantage
Section: Chapter Questions
Problem 6DQ
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Transcribed Image Text:Supporters of the jacket quota over free trade argue that the trade restriction will save jobs in the United States. What are the potential pitfalls of
such an argument? Check all that apply.
China may retaliate, imposing restrictions on their imports from the United States, thereby generating unemployment in U.S. export
industries.
Consumers will likely divert large amounts of scarce resources toward lobbying for the removal of the quota.
Trade restrictions simply reshuffle jobs by increasing employment in the protected industry and reducing employment in other industries.
The costs to domestic jacket consumers may outweigh the benefits of jobs saved in the jacket industry.
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