Choose one of the arguments countries generally use to justify protection for a particular industry. Describe the argument and any inherent problems with it. Is the argument primarily an economic or a noneconomic one?

Question

What will be an ideal response?

Answer 1

The revenue argument says that for low income nations and developing nations it is an easy tax to administer.
The Labor Argument is an economic argument about jobs, but fails to recognize the importance of productivity rather than nominal wages.
The Infant Industry argument is an economic argument, but is often misapplied. The protection makes firms less likely to be efficient and encourages devoting resources to rent seeking.
The national security argument is a noneconomic argument. The problem is largely deciding which products are critical and the encouragement of rent-seeking.
The cultural protection argument says that an industry is valuable for preserving heritage or culture.
The retaliation argument is an economic argument about how to respond to trade barriers but there is not agreement about the harm caused by foreign trade barriers.