Question

Rasha is a protectionist. He witnessed the bankruptcies of several small businesses because they could not compete with cheaper goods marketed by foreign companies. When mobile phone manufacturing has just started in the U.K., Rasha's company was a first-entrant into the market. Which argument would Rasha most likely have used to convince the government to restrict the inflow of foreign mobile phones?

Answer 1

Protection of domestic infant industry

Step-by-step explanation:

Since in this case, the main reason for the bankruptcy of the smaller companies was because they could not compete selling their own phones at a cheaper amount like those marketed by foreign companies.

Hence, Rasha would most likely argue that the UK government has a responsibility to protect the domestic infant industry. In other words, there should be policies created to protect locally made mobile phone companies in the UK.