An argument for the use of commercial policy rest on the need to

Answer Details

Commercial policy (also called trade policy) refers to the set of government measures used to regulate international trade. These measures include tariffs, quotas, embargoes, and subsidies. One of the strongest arguments for using commercial policy is the need to reduce domestic unemployment.

By imposing tariffs or quotas on imported goods, a government makes foreign products more expensive or restricts their quantity, thereby protecting domestic industries from foreign competition. When local industries are shielded, they can maintain or expand production, which preserves and creates jobs for domestic workers. This is sometimes called the infant industry argument or the employment protection argument for trade restrictions.

The other options do not represent valid arguments for commercial policy:

• Making imported goods affordable would require removing trade barriers, which is the opposite of commercial policy restrictions.
• Encouraging importation of non-essential goods contradicts the purpose of trade policy, which typically aims to restrict such imports to conserve foreign exchange.
• No trade policy can make a country enjoy absolute advantage in the production of all goods - absolute advantage depends on a country's resource endowments and productivity, not on trade restrictions.