The infant industry argument was an important theoretical basis for
A) neo-colonialist theory of international exploitation.
B) import-substituting industrialization.
C) historiography of the industrial revolution in Western Europe.
D) the East-Asian miracle.
E) the reduction of tariffs on Western Europe.

Question

Quizplus · Accepted Answer

The infant industry argument was a theoretical basis for import-substituting industrialization, which involves the creation and development of domestic industries to replace imports. The argument suggests that new industries need protection from established foreign competitors through government policies such as tariffs, subsidies, and regulations until they become strong enough to compete on their own.

The Infant Industry Argument Was an Important Theoretical Basis for