What is considered the most common political argument for government intervention in foreign trade quizlet?

1. Protecting jobs - The most common political reason for trade restrictions

2. Retaliation for unfair foreign competition - when governments take, or threaten to take, specific actions, other countries may remove trade barriers

3. Protecting Consumers from "Dangerous" products

4. Protecting industries deemed important for national security - industries are often protected because they are demmed important for national security

5. Furthering the goals of foreign policy - preferential trade terms can be granted to countries that a government wants to build strong relations with.

6. Protecting the human rights of individuals in exporting countries - through trade policy actions

7. Protecting the environment - international trade is associated with a decline in environmental quality

1) protect jobs - most common political reason for trade restriction
- results from political pressures by unions or industries that are "threatened" by more efficient foreign producers

2) protecting industries -
deemed important for national security
-i.e. aerospace, energy, semiconductors

3) retaliation for unfair foreign competition - action taken as a response to another country's policies
-risky strategy --> intervention hurts consumers, if you get in trade war and keep enforcing regulation you can really hurt consumers

4) protecting consumers: from "dangerous" products - limit "unsafe" products

5) furthering the goals of foreign policy
-preferential trade terms can be granted to countries that a gov't wants to build strong relations with
-can also be used to punish rogue states

6) protect the human rights of individuals in exporting countries

7) protecting the environment: int'l trade is associated w/ decline in environmental quality
-concern over global warming
-concern of environmental regulations

What is considered the most common political argument for government intervention in foreign trade?

Perhaps the most common political argument for government intervention is that it is necessary for protecting jobs and industries from unfair foreign competition. Competition is most often viewed as unfair when producers in an exporting country are subsidized in some way by their government.

What arguments are used to justify government intervention in foreign?

The political arguments for trade intervention are plentiful and are designed to: Protect jobs and overall industries. Protect national security. Political retaliation.

Which argument for government intervention suggests that an industry should be protected until it can develop and be viable and competitive internationally?

The infant-industry theory states that new industries in developing countries need protection against competitive pressures until they mature. This theory, first developed in the early 19th century by Alexander Hamilton and Friedrich List, is often a justification for protectionist trade policies.

What are some of the reasons a government would restrict trade quizlet?

Countries often restrict trade through tariffs, quotas, sanctions, or embargos. Trade restrictions can protect domestic industries, save jobs, bring in revenue for a government, and help a country attain a political or social goal.

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