
Which of the following describes the infant industry argument for protectionism?
A) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition.
B) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.
C) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field.
D) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.
Correct Answer:
Verified
Q156: Figure 9-3 Q157: Figure 9-3 Q158: Figure 9-3 Q159: Figure 9-3 Q160: In reaction to the passage of the Q162: Suppose that American firms claim that protectionism Q163: Suppose that American firms claim that protectionism Q164: Imposing tariffs in cases of dumping Q165: Which of the following statements is used Q166: Many economists criticize protectionism because it causes Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)is allowed