Reference no: EM132286885

Which of the following arguments in favor of tariffs and quotas is partially valid?

1. We need to protect some industries that would be needed to protect national security in the event of a war (e.g. let's not sell nuclear weapons to North Korea)
2. Workers are paid less in foreign countries, so U.S. industries cannot hope to compete with foreign imports (they are paid just a fraction of US workers)
3. The United States loses wealth when money flows abroad in payment for imports. (The dollars flow out of the U.S.)
4. If foreigners impose tariffs on our products, then they have an advantage if we don't retaliate. (Only when the playing field is the same can we gain)
5. Tariffs increase workers employment opportunities (if they don't send it over here we have more jobs to be done)