Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.

Question

Quizplus · Accepted Answer

Infant-industry protection is a policy that aims to protect and promote the development of domestic industries that are too young or too weak to compete with foreign competition. This requires some segment of the economy to incur higher costs because local production is less efficient than importing goods. This higher cost is generally borne by consumers who pay more for domestic products than they would if they were to buy imported goods.

Infant-Industry Protection Requires Some Segment of the Economy to Incur