Chapter 5, Problem 12P

To determine

If the protectionism of the agriculture industry in U S is justifiable under three arguments for trade protection explained in the book

Concept Introduction:

Arguments in Favor of Trade Protection: There are generally three arguments in favor of the trade protection are as follows:

National Security: It is believed that during the time of international conflicts or bad relationship, the exporting country denies exporting the good. If the country is not self-sufficient then such situation leads to major crisis.

Job Creation: It is believed that the import competing industries create additional jobs if they are protected against the import of the goods.

Infant Industry Argument: It is the most widely discussed argument against the import of the good. It says that when an industry starts, it needs some time for the establishment so; it must be protected against the import to compete in the coming time.