The infant industry argument suggests that
A) a country requires tariff protection when it has no comparative advantage in the production of any good.
B) a country requires protection against unfair trade practices.
C) an industry may require temporary tariff protection until the industry matures.
D) the industry has no potential and must be protected to survive.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that an industry may require temporary tariff protection until the industry matures. This is because the industry may face initial difficulties in competing with established industries in other countries, and therefore requires temporary protection to develop and become competitive. Once the industry matures and becomes competitive, the tariffs can be removed.

The Infant Industry Argument Suggests That