The most efficient way to encourage the growth of an infant-industry is through a
A) voluntary export restraint.
B) tariff.
C) subsidy.
D) an import quota.

Question

Quizplus · Accepted Answer

Subsidies are direct financial supports from the government to the infant industry, reducing production costs and encouraging growth without directly restricting international trade, making it a more efficient method compared to tariffs or quotas which can lead to retaliatory measures and increased costs for consumers.

The Most Efficient Way to Encourage the Growth of an Infant-Industry