The country of Theta restricts the activities of foreign insurance companies in order to give Theta's insurance industry a chance to grow and develop. Theta's actions are an example of the ________ argument in favor of protectionism.

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The infant-industry argument advocates protecting new industries in a developing country from foreign competition in order to give them a chance to grow and establish themselves. In this case, Theta wants to protect its insurance industry from foreign competition in order to allow it to grow and develop.

The Country of Theta Restricts the Activities of Foreign Insurance