The argument that a tariff can provide temporary protection to an industry so that the industry can expand, realize economies of scale, and eventually become an export industry is known as the
A) antidumping argument.
B) national defense argument.
C) infant industry argument.
D) terms of trade argument.

Question

Quizplus · Accepted Answer

The argument that a tariff can provide temporary protection to an industry so that the industry can expand, realize economies of scale, and eventually become an export industry is known as the infant industry argument. This argument suggests that new industries need protection from established industries in other countries until they have had time to develop and become competitive in their own right. The other options are not relevant to this argument.

The Argument That a Tariff Can Provide Temporary Protection to an Industry