What are important arguments in favor of trade protection policies?

(select all that apply.)

trade protection policies increase people’s wages.
trade protection policies protect a country’s security.
trade protection policies protect infant industries.
trade protection policies increase tariff revenue.

Trade protection policies protect infant industries.

Trade protection policies increase tariff revenue.

Explanation:

Trade protection policies are government tools that aim to protect the domestic industry from foreign competition. This type of policy is enforced through import duties and quotas. Thus, the main argument is to promote the national industry in order to protect it from competition. In addition, import taxes increase revenue, because whenever a product is imported, a tax will be paid to the government.

The correct answers are:

Trade protection policies protect a country’s security.

Trade protection policies protect infant industries.

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