One of the main reasons why many economists remain critical of the infant industry argument is its reliance on the assumption that
A) protection of manufacturing from foreign competition is harmful.
B) absolute advantage cannot sustain productivity of an industry.
C) foreign firms too come under the definition of infant industry when they newly enter a foreign market.
D) firms are unable to make efficient long-term investments by borrowing money from the domestic or international capital markets.
E) foreign competition will eventually cause domestic firms to improve the quality of their products.
Correct Answer:
Verified
Q67: The Smoot-Hawley Act had a damaging effect
Q68: According to Krugman, _ is the best
Q69: Another basis for Krugman's argument is that
Q70: A major reason why many economists remain
Q71: Indonesia might have a potential comparative advantage
Q73: The economic prosperity enjoyed by _ during
Q74: GATS, a sister body of the World
Q75: According to _, a government should use
Q76: Which multilateral trade agreement was established under
Q77: One of the reasons why protectionist pressures
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents