Asked by
Shakti Prasad
on Dec 12, 2024Verified
The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that
A) all industries will claim that they are infant industries in order to gain protection.
B) the protected industry will become too efficient and drive out foreign competition.
C) once in place, it is difficult to remove protection even as the industry matures.
D) it causes the goods that are produced in the protected industry to have lower prices.
Infant Industries
Industries in their early stage of development, which may be protected by the government from international competition to allow them to grow.
- Recognize the arguments related to infant-industry protection and their criticisms.
Verified Answer
NR
Learning Objectives
- Recognize the arguments related to infant-industry protection and their criticisms.
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