The idea of dynamic (i.e. changing) comparative advantage is the basis for which of the following arguments for protection from foreign competition?
A) the cheap foreign labor argument
B) the infant-industry argument
C) the dumping argument
D) the saves jobs argument

Question

Quizplus · Accepted Answer

The infant-industry argument for protectionism is based on the idea of dynamic comparative advantage. It suggests that emerging industries in a country may initially be less competitive internationally but can develop a comparative advantage over time if protected from foreign competition during their development phase.

The Idea of Dynamic (I