Under which circumstance is the national security justification for trade protection most justified?

Show Answers

When the goal is to sustain protection indefinitelyIf the sector experiences increasing returns to scaleDuring times of economic downturnWhen the industry supplies essential products in wartimeIf the market is highly competitive

Explanation

The national security argument for protection holds strongest when the industry in question produces critical goods necessary during wartime, ensuring the nation's defense capabilities are maintained.