An argument in favour of protective tariffs is the "infant-industry argument." Which of the following statements would best reflect that argument?
A) Infant industries should be protected from established foreign competition.
B) Infant industries should be exempt from antitrust laws.
C) Any industry dealing with products for infants should be protected.
D) Infant industries need government loans.

Question

Quizplus · Accepted Answer

The infant-industry argument advocates for the protection of new or developing industries with the imposition of protective tariffs against established foreign competition. The argument suggests that without such protection, these infant industries would not be able to survive and grow to compete at a later date. Therefore, choice A reflects this argument by stating that these industries should be protected from established foreign competition through tariffs.

An Argument in Favour of Protective Tariffs Is the "Infant-Industry