Which of the following states the "infant industry" argument for trade protection?
A) Tariffs should be implemented in order to improve the terms of trade and thereby maximize the gains from trade.
B) Tariffs should not be imposed on countries that have democratic governments.
C) In the presence of unexploited scale economies,tariff protection may permit a country to develop future comparative advantage in certain products.
D) Imports of certain products should be limited in the interests of national defence.
E) "Strategic" trade policy is helpful when other countries are also being strategic.
Correct Answer:
Verified
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