Question

Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small businesses go bankrupt because cheaper foreign goods have been more popular. The cell-phone manufacturing industry has just started in the U.K. and Smithe-Jones' company is one of the first to try its hand at cell-phone manufacturing. Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U.K.?

A) Ensuring fair competition
B) Fostering innovation and growth
C) Protecting infant industries

Answer 1

The argument that Smithe-Jones would likely use to persuade his government representatives that protectionism is still needed in the U.K. is the infant industry argument.

Step-by-step explanation:

The argument that Smithe-Jones would likely use to persuade his government representatives that protectionism is still needed in the U.K. is the infant industry argument.

The infant industry argument proposes that small domestic industries need protection from foreign competition for a limited time to allow them to develop the necessary skills, technology, and economies of scale to become successful and competitive in the global market.

By implementing protectionist policies such as blocking imports temporarily, Smithe-Jones believes that the U.K.'s cell-phone manufacturing industry can have a better opportunity to grow and compete with foreign competitors.