Company Z is a U.S.company that has just entered the market for a given good and is the first in this country to produce that good.The good is already being produced in many foreign countries is exported to the United States.If company Z wants to restrict this foreign competition,it will most likely use which of the following arguments?
A) anti-dumping
B) national-defense
C) job-creation
D) infant-industry
E) low-foreign-wages

Question

Quizplus · Accepted Answer

Company Z can argue that it is an infant industry and needs protection against foreign competition to establish itself in the market. The argument of infant industry can be used to justify protectionist measures such as tariffs, quotas or subsidies. Anti-dumping measures are used to prevent foreign firms from selling products in the U.S. at a lower price than in their home country. National-defense argument is used to justify protectionist measures to maintain domestic industries that are necessary for national security. Job-creation and low-foreign-wages arguments are not relevant in this case.

Company Z Is a U