Of the many arguments in favor of tariffs,the one that has enjoyed the most significant economic justification has been the:
A) Infant industry argument
B) Cheap foreign labor argument
C) Balance of payments argument
D) Domestic living standard argument

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new domestic industries in developing countries need temporary protection from foreign competition through tariffs. This allows them time to become competitive and achieve economies of scale. This argument is supported by the idea that without tariffs, domestic industries may never develop, which could result in a lack of diversity in the economy and national security risks.

Of the Many Arguments in Favor of Tariffs,the One That