The industry for computers has just started growing in the nation of Verdana,and there is potential for the industry to flourish in the near future.However,there is stiff competition from other foreign nations that provide computers to the domestic market.The government is considering imposing a tariff.Which of the following arguments justifies the government's decision to impose a tariff on the import of computers?

Question

Quizplus · Accepted Answer

The infant industry argument justifies the government's decision to impose a tariff on the import of computers. This argument suggests that the domestic industry needs to be protected from foreign competition initially until it can establish itself and become competitive. By providing protection in this way, the government can ensure that the domestic industry has a chance to grow and compete in the long term.

The Industry for Computers Has Just Started Growing in the Nation