Arguments in Support of Protectionism (And Against Free Trade) Include

question 265

Multiple Choice

Arguments in support of protectionism (and against free trade) include all of the following EXCEPT

• A) new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts.
• B) jobs at home should be protected from cheap foreign labor.
• C) protectionism increase total domestic consumption possibilities.
• D) national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies.

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Definitions:

Noncash Investing

Investing activities that do not involve direct cash transactions, such as acquiring assets through exchange or issuing stock for assets.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures required to maintain or expand its asset base.

Productive Capacity

The maximum output a system can produce over a set period under normal conditions.

PP&E

Property, Plant, and Equipment - A company's tangible fixed assets that are expected to provide economic benefits for more than one year.