ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Self-sufficient
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Rely on trade with orther countries
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Integrative
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Self-contained
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Detailed explanation-1: -National Self-Sufficiency Argument: Protection is also advocated to attain self-sufficiency in essential goods. The industries which are essential for national self-sufficiency are to be protected. This is really a convincing argument for protection in developing countries like India.
Detailed explanation-2: -Proponents of protectionism argue that the policies can help to create domestic jobs, increase gross domestic product (GDP), and make a domestic economy more competitive globally.
Detailed explanation-3: -The most effective, accepted and sustained argument in support of protection is that a newly established industry is incapable of facing intense competition from the low-cost foreign industries in its earlier stage of development.
Detailed explanation-4: -Non-economic arguments for protection of trade policy are: 1. Defence Argument 2. Patriotism Argument 3. Preservation Argument!