Question

International trade is the subject of much debate. Many economist favor encouraging international trade, citing the benefits gained by trade. However, there are economic arguments for limiting international trade with protectionism. Classify the given statements into the appropriate category. Arguments for promoting international trade Arguments for limiting international trade with protectionism

Answer 1

the arguments are missing, so I looked for similar questions and found:

1. The ability of a nation to consume more than it can produce domestically. ⇒ ARGUMENT FOR PROMOTING INTERNATIONAL TRADE. Excess production should be exported.
2. The infant industry argument. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Certain new industries should be protected until they mature and become leaders.
3. Changes in productivity associated with specialization. ⇒ ARGUMENT FOR PROMOTING INTERNATIONAL TRADE. As specialization occurs, production output increases allowing for trade benefits.
4. The potential for other governments to subsidize firms, enabling them to charge lower prices than domestic firms can. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Since other countries subsidize their exports, we should impose tariffs to level the market.
5. The national defense/interest argument. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Some sectors are important and should be protected.
6. Job loss in some labor markets. / Worries about domestic labor markets. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Imported goods result in people losing their jobs.