Question

A congresswoman from a state with several semiconductor factories argues that the government should impose a tariff on semiconductors because they are a necessary input into the production of various weapons. Free trade, she contends, would make the United States overly dependent on foreign countries for the supply of semiconductors and thus, in case of war, unable to make enough weapons to defend itself. Which of the following justifications is the senator using to argue for the trade restriction on semiconductors?

a. Infant-industry argument
b. Using-protection-as-a-bargaining-chip argument
c. Jobs argument
d. Unfair-competition argument
e. National-security argument

Answer 1

National-security argument

Step-by-step explanation:

Governments may intervene in markets for any reason at all.

A tariff is simply known as a tax

that is imposed on imports. There are various reasons why trade is restricted for product or services. The different arguments for restricting trade includes:

1. jobs argument

2. national security argument

3. infant-industry argument

4. unfair-competition argument

5. protection-as-bargaining-chip argument

The national security argument state that industries or product important to national security should be protected from foreign competition and not allow to focus mainly on dependence on imports that could be scattered during wartime.

The National Security Response is said to be as good as long as we base policy on true security needs.