Question

The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins.

Choose the correct answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-National security requires that strategically important goods be produced domestically.
-Protection can help infant industries develop.
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-Trade should not enable foreign firms to skirt U.S. regulations.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.

Answer 1

a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."

-Anti-dumping laws prevent unfair competition.

DUMPING REFERS TO GOVERNMENTS SUBSIDIZING EXPORTS IN ORDER TO LOWER THEIR PRICES. THIS IS AN ILLEGAL PRACTICE NOT ACCEPTED BY THE WORLD TRADE ORGANIZATION.

b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."

-Protection can help infant industries develop.

EVEN THOUGH CAR ARE MANUFACTURED IN THE US SINCE MANY YEARS AGO, TESLA AND OTHER ELECTRIC CAR MANUFACTURERS ARE STILL AN INFANT INDUSTRY.

c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."

-Foreign competition may lead to job losses.

JOBS MAY BE AT RISK WHEN A DOMESTICALLY PRODUCED GOOD IS REPLACED BY AN IMPORTED GOOD