Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.

-What is meant by the infant-industry argument?

Question

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.
 
-What is meant by the infant-industry argument?

Quizplus · Accepted Answer

The infant-industry argument suggests that countries should provide temporary protection to new industries that are not developed enough to compete with mature foreign industries. This protection can include subsidies, tariffs or other trade barriers to enable these industries to grow and eventually become internationally competitive.

Below Is a Graph Illustrating the Market for Mustard Seeds