Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 21: Q. 31 (page 522)

What is the national interest argument for protectionism with regard to certain products?

Short Answer

Expert verified

Products of national interest must have lesser reliance on imports.

Step by step solution

01

Step1. Introduction

With the increased globalization, protectionist policies are necessary. Protectionism essentially means the reduction in the volume of foreign trade and putting a cap and check on it.

02

Step2. Explanation

National interest arguments with respect to certain products states that for products like defense equipment, oil, technology, a country must not be too dependent on other countries. It is so because the trading country can comprise in terms of quality, pricing, etc and then the dependent country shall suffer.

It is hence important to let the domestic industry develop through protectionist policies. This is the argument put forward under national interest argument for protectionism.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What is the difference between a free trade association, a common market, and an economic union?

How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are industries like computers not good candidates for infant industry protection?

You have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing well and the Malawian export market is developing. As such, Malawi coffee is an infant industry. Malawi coffee producers come to you and ask for tariff protection from cheap Tanzanian coffee. What sorts of policies will you enact? Explain.

If trade barriers hurt the average worker in an economy (due to lower wages), why does the government create trade barriers?

Name several of the international treaties where countries negotiate with each other over trade policy.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free