Currently Belize, a country in Central America, has a small coffee industry but does not export any coffee. Suppose the government of Belize, in order to protect the new coffee industry to enable it to grow into a mature industry that can compete in world markets, places a tariff on the importation of coffee. What is the argument for placing the tariff on coffee?
A) the infant-industry argument
B) the dumping argument
C) to protect Belize coffee workers
D) to prevent rich countries from exploiting developing countries
Correct Answer:
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