What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?
The national security argument is that the nation must protect and maintain industries that produce defense equipment and armaments as well as those industries upon which the defense industries rely. The problem with this argument is that all industries contribute to national defense, though some do so directly while others do so indirectly. For instance, the sugar industry contributes to national defense because factory workers and armed service men and women drink colas made using sugar, but protecting the sugar industry for reasons of national defense is ludicrous.
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A VRA is an example of
A) a "voluntary" quota. B) a tariff. C) an illegal foreign good. D) an illegal foreign tariff.
According to the Taylor rule, if inflation rises by 1 percent above its target of 2 percent, the Fed should:
A. Lower the real Federal funds rate by 0.5 percent B. Raise the real Federal funds rate by 0.5 percent C. Lower the money supply by 5 percent D. Raise the money supply by 5 percent