Company Z is a U.S.company that is the first in this country to produce a good that is already produced in many foreign countries and sold in the United States.Most likely,the argument it will voice in its attempt to be protected from foreign competition is the __________ argument.

Question

Quizplus · Accepted Answer

The situation described in the question is typical of an infant industry. An infant industry refers to a new domestic industry that is unable to compete with established foreign competitors. Therefore, the company Z will argue that it needs protection from foreign competition until it can become strong enough to compete on its own. This argument is often used by domestic companies as a justification for protectionist measures such as tariffs or import quotas.

Company Z Is a U