The ____________ment is one of the oldest economic arguments for government intervention into the free flow of trade.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that protectionism is necessary to allow a new industry to grow and become competitive in the international market. This argument is based on the idea that the industry may not be able to compete initially due to lack of experience, investment, and economies of scale. Once the industry learns to compete, protectionism can be removed. This argument has been used to justify government intervention in various industries, such as steel and telecommunications.

The ____________Ment Is One of the Oldest Economic Arguments for Government