Multiple Choice
What has been the main drawback of globalization for the United States?
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views
9. International Trade
Arguments Against International Trade
Multiple Choice
Why do some industries lobby for protectionism?
A
To shield domestic firms and workers from foreign competition, preserving jobs and profits.
B
To promote specialization and efficiency through comparative advantage for the whole economy.
C
To guarantee faster technological progress and higher productivity in the protected industry.
D
To lower consumer prices by increasing the availability of imported goods.
Verified step by step guidance1
Step 1: Understand the concept of protectionism, which refers to government actions and policies that restrict or restrain international trade, often with the intent of protecting local businesses and jobs from foreign competition.
Step 2: Recognize that industries lobby for protectionism primarily to shield domestic firms and workers from foreign competitors who might offer cheaper or more efficient products, which could threaten local employment and profits.
Step 3: Analyze the other options: promoting specialization and efficiency through comparative advantage generally argues against protectionism, as free trade encourages this; guaranteeing faster technological progress is not a direct effect of protectionism; and lowering consumer prices by increasing imports is contrary to protectionist goals, which usually restrict imports.
Step 4: Conclude that the main motivation for industries lobbying for protectionism is to preserve jobs and profits by reducing foreign competition, which aligns with the first answer choice.
Step 5: Summarize that protectionism is a strategic move by domestic industries to maintain their market position and economic stability in the face of global competition.
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