Question

The arguments for restricting trade suppose there is a policy debate regarding the United States imposing trade restrictions on imported ball bearings: the president of the United States argues that the government should impose a tariff on ball bearings because they are a necessary input into the production of various weapons. Free trade would make the United States overly dependent on foreign countries for the supply of ball bearings. In case of a war, the United States might not be able to make or purchase enough ball bearings and, therefore, would not be able to make enough weapons to defend itself. Which of the following justifications is the president using to argue for the trade restriction on ball bearings?

A. Low foreign wages argument
B. Foreign export subsidies argument
C. Saving domestic jobs argument
D. National defense argument
E. Infant industry argument

Answer 1

The president is using the National defense argument to justify trade restrictions on imported ball bearings, concerned with national security and self-reliance during wartime. The option (D) is correct.

Step-by-step explanation:

The president is using the national defense argument to justify the trade restriction on ball bearings. He argues that imposing a tariff on ball bearings is necessary because they are a necessary input into the production of various weapons.

The president believes that free trade would make the United States overly dependent on foreign countries for the supply of ball bearings, making it vulnerable in case of war when sufficient ball bearings may not be available to make weapons for defense. Therefore, option (D) is correct.