A possible drawback to the essential industry argument for import protectionism is ________.
A)that such protection hurts the protecting country's balance of payments
B)in times of military emergency, almost any product could be considered essential
C)other countries find supplies elsewhere
D)unemployment increases in the protecting country

Question

Quizplus · Accepted Answer

In times of military emergency, the definition of what constitutes an "essential" industry can expand significantly, making the argument for protectionism based on essential industries somewhat arbitrary and potentially overreaching. This can lead to excessive protectionism as more and more industries are deemed "essential" for national security or other reasons.

A Possible Drawback to the Essential Industry Argument for Import