The ___________________ argument is one of the oldest economic arguments for government intervention into the free flow of trade.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new industries may initially lack the economies of scale that their older competitors, often from abroad, may have. Thus, they may need protection or support from the government until they become competitive. This is a classic rationale for trade protectionism to allow young industries to develop.

The ___________________ Argument Is One of the Oldest Economic Arguments