Economists generally agree that trade restrictions are detrimental to trade and reduce government efficiency. Why then do governments restrict trade? Arguments for restricting trade include to promote national defense, to impose sanctions on other countries, to protect domestic infant industries, to create or preserve domestic jobs, to ensure fair competition, and to retaliate for unfair trade policies of other governments Match each action to the correct argument for trade intervention Limits on trade with certain countries import duties on products from a foreign country Subsidies for industries considered vital to national security Subsidies for emerging industries Counterpan oe imports Argument for Intervention To provide for national defense To impose sanctions To protect infant industries To ensure fair competition To provide retaliation Action Counterban on imports Limits on trade with certain countries import duties on products from a foreign country Subsidies for emerging industries Subsidies for industries considered vital to national securitvi

Economists generally agree that trade restrictions are detrimental to trade and reduce government efficiency. Why then do governments restrict trade? Arguments for restricting trade include to promote national defense, to impose sanctions on other countries, to protect domestic infant industries, to create or preserve domestic jobs, to ensure fair competition, and to retaliate for unfair trade policies of other governments Match each action to the correct argument for trade intervention Limits on trade with certain countries import duties on products from a foreign country Subsidies for industries considered vital to national security Subsidies for emerging industries Counterpan oe imports Argument for Intervention To provide for national defense To impose sanctions To protect infant industries To ensure fair competition To provide retaliation Action Counterban on imports Limits on trade with certain countries import duties on products from a foreign country Subsidies for emerging industries Subsidies for industries considered vital to national securitvi

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Economists generally agree that trade restrictions are detrimental to trade and reduce government efficiency. Why then do
governments restrict trade? Arguments for restricting trade include to promote national defense, to impose sanctions on other
countries, to protect domestic infant industries, to create or preserve domestic jobs, to ensure fair competition, and to retaliate for
unfair trade policies of other governments
Match each action to the correct argument for trade intervention
Limits on trade with certain
countries
import duties on products
from a foreign country
Subsidies for industries
considered vital to national
security
Subsidies for emerging
industries
Counterpan on imports
Argument for
Intervention
To provide for national
defense
To impose sanctions
To protect infant industries
To ensure fair competition
To provide retaliation
Action
Counterban on imports
Limits on trade with certain
countries
import duties on products
from a foreign country
Subsidies for emerging
industries
Subsidies for industries
considered vital to national i
security

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