Which of the following describes the infant industry argument for protectionism?
A) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.
B) Domestic producers in high -wage countries must be protected from foreign producers in low -wage countries to produce a level playing field.
C) An industry must be protected in its early stages of development so that firms can compete with government -subsidized foreign competition.
D) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new industries need protection from international competition until they become established and can compete on their own.

Which of the Following Describes the Infant Industry Argument for Protectionism