Question

match the argument with the response suggested by economi

Match the argument with the response suggested by economists. The jobs argument: Trade should be restricted A Trade restriction causes domestic prices to rise. The cost because it destroys jobs in industries that compete with imports to consumers exceeds the lost earnings of workers who lose their jobs. It would be cheaper to pay the workers The dumping argument When a producer sells a retaliation from trading partners will shrink employment for not working and allow the imports in. Also good in the US. for less than the price he charges in the export industry in his home country, he is said to be 'dumping the product in the US. This practice can put the domestic industry out of business, allowing the industry alive. It would be cheaper to subsidize the foreign 'dumper' to establish a dominant marketdomestic industry and still allow imports in the share and charge monopoly prices later. In this country. Also, almost any industry can make a B. Trade restriction is an expensive way to keep a key situation protective tariffs or quotas are justified.claim that it should qualily for this type of protection The protection-as-bargaining-chip argument The US. can threaten to limit imports of Chinese goods unless China cooperates with some other demand This could work, but it's risky. Suppose China refuses. Then the US must choose between two bad options: Restrict imports from China, which makes US consumers worse off, or don't restrict imports which The forced labor argument: it is wrong to engage reduces U.S. credibility in trade with producers who engage in abusve D.Great Then we can import extra-cheap products labor practices subsidized by the other countrys taxpayers. The gains producers driving others out of business with low prices, his The "Key Industry" argument: We need to keep to our consumers Will exceed the losses to our some 'key" industries because of beneficial spillovers onto other sectors Protection of computer chip manufactureres, fo benefa other firms t. If the foreign Siem monopolizes the domestic industry by r example, can d monopoly position will immediately be challenged by The unfair-competition argument Producersnewomers if he raises his price. In the meantime the low prices are an unambiguous benefit for US argue their competitors in another country have an unfair advantage, due to government subsidies or lower taxes consumers F. Some economists claim that trade restriction coud make life even worse for the abused workers But Kutyk thinks ther is some merit to this argument There is no economic justification for any kind of involuntary labor. it may be appropriate to use one's bargaining power to pressure producers to comply with

Answer 1

The jobs argument: correct response is A

Dumping argument: Response is E

protection as bargaining : response C

Forced Labor : Response is F

key industry : Response B

unfair competition: Response is option D