In the mid-nineteenth century,the American steel rail industry could not compete with the established British steel rail industry,and imports of British steel rails flooded the U.S.market.In response,the U.S.government imposed high tariffs on steel rails until U.S.steel rail mills could compete with their British counterparts.This is an example of ________.

Question

Quizplus · Accepted Answer

This scenario is an example of the infant industry argument, which is an economic policy that supports the protection of newly established industries until they are strong enough to compete in the international marketplace. The high tariffs imposed by the U.S. government were intended to protect the American steel rail industry until it could develop the necessary technology and expertise to compete with the established British industry.

In the Mid-Nineteenth Century,the American Steel Rail Industry Could Not