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2. The arguments for restricting trade Suppose there is a policy debate over whether the United States should impose trade restrictions on imported tires: The
2. The arguments for restricting trade Suppose there is a policy debate over whether the United States should impose trade restrictions on imported tires: The debate focuses on the job outsourcing in the tire industry. The president of the United States explains that it is necessary to impose restrictions against job outsourcing to protect workers in the domestic tire industry. The president claims that, without protection against job outsourcing, U.5. companies in the tire industry have incentives to outsource their jobs to developing countries where the labor is cheaper. This would leave many U.S. workers in the tire industry unemployed. Which of the following justifications is the president using to argue for the trade restriction on tires? A National security argument A Cheap foreign labor argument A Infant industry argument A Employment argument
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