【正确答案】Political Arguments: The political arguments cover a range of issues, including protecting jobs, protecting industries deemed important for national security, and retaliating against unfair foreign competition. In regard to protecting jobs, this is the most common political argument for government intervention. For example, the Japanese quotas on rice imports are aimed at protecting jobs in that country's agricultural sector. In terms of protecting industries deemed important for national security, countries sometimes argue that it is necessary to protect certain industries (like aerospace, steel, advanced electronics, etc.) because they are important for national security. Finally, in regard to retaliating against foreign competition, some people argue that governments should use the threat to intervene in trade policy as a bargaining tool to help open foreign markets and force trading partners to "play by the rules of the game."
Economic arguments: The economic arguments in favor of government intervention include the infant industry argument and strategic trade policy. The infant industry argument is most often used by developing countries. According to this argument, many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries there can not initially compete with well-established industries in developed countries. To allow manufacturing to get a toehold, the argument is that governments should temporarily support new industries (with tariffs, import quotas, and subsidies) until they have grown strong enough to meet international standards. The strategy trade policy argument is more complex, but basically argues that governments should use their trade policies to help certain domestic firms dominate their global industries and gain first-mover advantages, and that it might pay government to intervene in an industry if it helps domestic firms overcome the barriers to entry created by foreign firms that have already reaped first-mover advantages.
The author of the textbook clearly believes that the economic arguments for government intervention into international trade are the most compelling. This question presents an interesting and engaging topic for classroom discussion.
【答案解析】