The infant industry argument for protectionism:
A) is strong because without it industrialisation is impossible.
B) often leads to a situation of longer term protectionism than was ?rst envisaged.
C) over estimates the importance of competition in improving ?rm-level economic e?ciency.
D) has increasingly been accepted by economists as a necessary evil.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new industries may initially need protection from international competition to develop. However, this protection can often become prolonged, extending beyond the initial period intended, as industries become accustomed to the protection and lobby for its continuation.

The Infant Industry Argument for Protectionism