Which of the following is NOT a problem associated with the infant industry argument?

Question

Quizplus · Accepted Answer

The infant industry argument suggests that protection is needed for new domestic industries until they become established and can compete in the global market. However, one of the problems associated with this argument is that protection can do more economic harm than good. Protecting a domestic industry could lead to inefficiencies, higher costs for consumers, and harm to other industries. This is why countries must carefully weigh the potential benefits of protection against the economic costs. The other options listed (B, C, and D) are all actual problems associated with the infant industry argument.

Which of the Following Is NOT a Problem Associated with the Infant