Explain the national defense, declining industries, and infant industry arguments for protecting a domestic industry from international competition.
The national defense argument posits that if a nation anticipates the need to defend itself, it may need to have productive capacity for war-related goods at home. For example, although a country may not be able to produce metals efficiently, it may want to protect those industries through trade restrictions. If it become dependent on a foreign supply which is suddenly cut ...
Analysis of the national defense, infant industry, and declining industry arguments for protectionism.