Chapter 26: Problem 899

Differentiate the national security argument from the cheap foreign labor argument in favor of protection.

Short Answer

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In short, the national security argument for protection emphasizes the need to safeguard vital industries for a nation's safety and well-being, promoting self-sufficiency and secure access to critical resources. Conversely, the cheap foreign labor argument seeks to defend domestic industries and jobs facing competition from countries with lower labor costs, addressing economic concerns rather than national security.

Step by step solution

Define the national security argument

The national security argument posits that certain industries are essential for a nation's safety and well-being and should therefore receive protection from foreign competition. Industries such as defense, energy, and food production are examples of sectors that might receive protection under the national security argument. The rationale is that in times of crisis, a nation must be able to maintain self-sufficiency, provide for its military, and have reliable access to key resources.

Define the cheap foreign labor argument

The cheap foreign labor argument, on the other hand, refers to the idea that certain industries in a nation cannot compete with those in countries where labor costs are significantly lower. Consequently, protectionist measures may be implemented in order to protect those industries and the jobs they provide. Examples of such measures include tariffs, import quotas, or subsidies to domestic industries.

Contrast the two arguments

The key difference between the national security argument and the cheap foreign labor argument lies in their fundamental objectives and concerns. The national security argument focuses on securing a nation's overall safety, promoting self-sufficiency, and ensuring stable access to vital resources. In contrast, the cheap foreign labor argument centers on economic concerns, specifically the protection of domestic industries and jobs that are at a competitive disadvantage due to lower labor costs in other countries.

Summarize the differences

In summary, while both the national security argument and the cheap foreign labor argument advocate for protectionist measures, the former focuses on the broader interests of national security, safeguarding strategic industries and essential resources. The latter aims to shield domestic industries and jobs from competition in countries with substantially cheaper labor costs.

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