The (false) idea that an industry should be protected because of learning-by-doing until it is large enough to compete successfully in world markets is the ________ argument for protection.
A) cheap foreign labor
B) infant industry
C) dumping
D) comparative advantage

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new industries may initially lack the economies of scale or experience to compete against established players internationally. Protectionism, in this view, allows these industries to grow and become competitive over time.

The (False) Idea That an Industry Should Be Protected Because