According to the __________ argument,many developing countries have a potential comparative advantage in manufacturing,but new manufacturing industries there cannot initially compete with well-established industries in developed countries.To allow manufacturing to get a toehold,the argument is that governments should temporarily support new industries (with tariffs,import quotas,and subsidies)until they have grown strong enough to meet international competition.

Question

Quizplus · Accepted Answer

The argument described in the passage refers to the concept of an "infant industry," which suggests that new and developing industries in countries may need temporary protection from foreign competition in order to become established and competitive in the global market. This protection can come in the form of tariffs, import quotas, and subsidies, as described in the passage.

According to the __________ Argument,many Developing Countries Have a Potential