An argument in favour of protective tariffs is the "infant-industry argument." Which of the following statements would reflect that argument?

Question

Quizplus · Accepted Answer

The infant-industry argument proposes that protecting new, smaller industries from established foreign competition through tariffs will enable them to grow and develop to a point where they can compete on a level playing field with established industries. Therefore, choice A is the best answer as it directly reflects this argument. Choice B is incorrect as it discusses antitrust laws, which are not related to protective tariffs. Choice C is incorrect as it is too vague and unrelated to the concept of infant industries. Choice D is also incorrect as it discusses government loans, which are not necessarily related to protective tariffs.

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