the notion or idea that ______ is the infant-industry argument in favor of trade
ID: 1129899 • Letter: T
Question
the notion or idea that ______ is the infant-industry argument in favor of trade protectionism select one: a. it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period b. incubator centers in which business, government, and academic coorporate will develop entrepreneurial companies c. lower restrictions should be placed on products coming from countries where a government has a large sphere of political influence d. a country should give one firm in an industry a monopoly status so that it will grow large enough to be competitive internationally
Explanation / Answer
Answer.) a. it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period
The Infant-Industry Argument: a new industry argues for temporary protection until it is mature and can compete with foreign firms. The argument contends that protective tariffs are needed to allow new domestic industries to establish themselves. Temporarily shielding young domestic firms from the severe competition of more mature and more efficient foreign firms will give infant industries a chance to develop and become efficient producers.
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