The argument that developing countries should nurture their domestic industries by protecting them from foreign competition is known as
A)preservation of the home market.
B)the escape clause hypothesis.
C)the earth destruction hypothesis.
D)institutional fair trade policy.

Question

Quizplus · Accepted Answer

This argument is commonly known as the "infant industry argument." The idea is that developing countries need to protect their new industries from established foreign competition in order to give them time to grow and become competitive on a global scale. This protection can come in the form of tariffs, quotas, or other trade barriers that limit the amount of foreign goods that can enter the domestic market. By preserving the home market in this way, the hope is that domestic industries will become more efficient and productive, leading to long-term economic growth and development.

The Argument That Developing Countries Should Nurture Their Domestic Industries