The industry for computers has just started growing in the nation of Verdana, and there is potential for the industry to flourish in the near future. However, there is stiff competition from other foreign nations that provide computers to the domestic market. The government is considering imposing a tariff. Which of the following arguments justifies the government's decision to impose a tariff on the import of computers?

Question

Quizplus · Accepted Answer

The infant industry argument justifies the imposition of a tariff on the import of computers in order to protect the domestic computer industry and allow it to grow and compete with established foreign industries. This protection enables the industry to develop until it is able to compete globally.

The Industry for Computers Has Just Started Growing in the Nation