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Why is the national security argument not convincing?

Short Answer

Expert verified

It is not practical as it does not solve the core problem.

Step by step solution

01

Step1. Introduction

Imports are blocked, more often than not to promote and support the domestic producers. There are many arguments by which countries restrict imports like Infant Industry Argument, Environmental Degradation Argument, etc. One such argument is National Security Argument.

02

Step2. Explanation

Under the National Security/Interest Argument, it argues that a nation can not and must not heavily rely and depend upon other countries for the supply of certain key products like defense machinery, oil, etc. These products are of key and strategic importance to any country.
But, the argument is not convincing enough as if we don't import, it suggests to domestically utilize the limited resources without any efficient technology. This might be even more harmful for the economy. Also, under this argument, countries attempt to restrict the imports of even those products which can't really be called as a national concern. Hence, the argument is not convincing.

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Most popular questions from this chapter

What is the general trend of trade barriers over recent decades: higher, lower, or about the same?

Does international trade, taken as a whole, increase the total number of jobs, decrease the total number of jobs, or leave the total number of jobs about the same?

Is international trade likely to have about the same effect on everyoneโ€™s wages?

Assume a perfectly competitive market and the exporting country is small. Using a demand and supply diagram, show the impact of increasing standards on a low-income exporter of toys. Show the tariff's impact. Is the effect on toy prices the same or different? Why is a standards policy preferred to tariffs?

The country of Pepper land exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in Table.

Price\(Qd
Qs
60230180
70200200
80170220
90150240
100140250

Table 20.6 Pepper land

Price\)Qd
Qs
60430
310
70420330
80410360
90400400
100390440

Table 20.7 Land of Submarines

a. What would be the equilibrium price and quantity in each country in a world without trade? How can you tell?

b. What would be the equilibrium price and quantity in each country if trade is allowed to occur? How can you tell?

c. Sketch two supply and demand diagrams, one for each country, in the situation before trade.

d. On those diagrams, show the equilibrium price and the levels of exports and imports in the world after trade.

e. If the Land of Submarines imposes an antidumping import quota of 30, explain in general terms whether it will benefit or injure consumers and producers in each country.

f. Does your general answer change if the Land of Submarines imposes an import quota of 70?

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