Suppose there is a policy debate regarding the United States imposing trade rest

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?

Jobs argument

Infant-industry argument

Unfair-competition argument

National-security argument

Using-protection-as-a-bargaining-chip argument

Explanation / Answer

Infant-industry argument

Under Infant-industry argument, trade restrictions are temporarily imposed so that people buy from domestic industry. Eventually domestic industry mature and adjust and would eventually be able to compete in the world market.

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