The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that
A) all industries will claim that they are infant industries in order to gain protection.
B) the protected industry will become too efficient and drive out foreign competition.
C) once in place, it is difficult to remove protection even as the industry matures.
D) it causes the goods that are produced in the protected industry to have lower prices.

Question

Quizplus · Accepted Answer

Once protection is in place, it is difficult to remove it, even as the industry matures and becomes more competitive. This is because the protected industry will have become accustomed to the protection and will lobby to keep it in place.

The Main Problem with Using the Infant Industries Argument to Justify