Question

A senator from a state with several semiconductor factories argues that the United States should threaten to impose tariff on Chinese semiconductors in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the senator using to argue for the trade restriction on semiconductors? 

• Unfair-competition argument 

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

• National-security argument 

• Jobs argument 

• Infant-industry argument

Answer 1

Here, the senator is using the protectionism threat to strike a better deal for other market i.e. the cars.

The answer is "B", using protection as a bargaining chip.

Answer 2

The answer is Using-protection-as-a-bargaining-chip argument

Policymakers claim that a threat of trade restrictions can help remove trade restrictions already imposed by the foreign governments.