The idea of comparative advantage changes is the basis for which of the following arguments for protection from foreign competition?
A)the cheap foreign labour argument
B)the infant-industry argument
C)the dumping argument
D)the saves jobs argument
E)the prevents rich countries from exploiting developing countries argument

Question

Quizplus · Accepted Answer

The infant-industry argument for protection from foreign competition holds that countries should temporarily protect their new, developing industries from established foreign competitors until they become strong enough to compete on their own. This argument is based on the idea that a country may have a comparative disadvantage in a certain industry, but that disadvantage could be overcome with time and support.

The Idea of Comparative Advantage Changes Is the Basis for Which