Answer to Question #312107 in Microeconomics for Nacho

Question

Consider the arguments for restricting trade.

a. Imagine that you are a lobbyist for timber, an

established industry suffering from low-priced foreign competition, and you are trying to get Congress to pass trade restrictions. Which two

or three of the five arguments discussed in the chapter do you think would be most persuasive to the average member of Congress? Explain your reasoning.

Answer 1

Firstly, the most persuasive argument is that trade restrictions will help in providing markets for the locally produced timber over the foreign importers. This will in turn lead to increase in employment rate in the country from the factories processing timbers thereby increasing the GDP and income of the citizens. Secondly, restriction on timber will make the country to be independent on its own products. This will ensure that ways are devised to improve the quality of the timbers if they are not topnotch and bring them to a better quality. It will serve as a way to also penetrate the international competition rather than giving importers more access to the local market.