Randall, a Protectionist, Has Seen Several Small Businesses Go Bankrupt

question 61

Multiple Choice

Randall, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Randall's company is one of the first to try its hand at cell-phone manufacturing. Which of the following arguments is most likely to be used by Randall to persuade his government to restrict the import of foreign cell phones from foreign companies?

• A) Protection of an infant industry
• B) The need to keep money at home
• C) Conservation of natural resources
• D) National defense
• E) Maintenance of standard of living

---

Definitions:

Entire Agreement

A clause in a contract that declares the contract to be the complete and final agreement between the parties, superseding all prior negotiations, promises, or representations.

Privity of Contract

The principle that a contract directly affects and grants enforceable rights only to the parties involved in the contract agreement.

Promissory Estoppel

A legal principle that prevents a party from going back on a promise, even if it was made without formal consideration, when someone else has reasonably relied on that promise.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.