According to the ________ argument, governments should temporarily support new industries until they have grown strong enough to meet international competition.

Question

Quizplus · Accepted Answer

The infant industry argument is by far the oldest economic argument for government intervention. According to this argument, many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries.

According to the ________ Argument, Governments Should Temporarily Support New