If an established domestic industry is in jeopardy of being displaced by lower-priced imports, there could be a rationale for

Question

Quizplus · Accepted Answer

Temporary import restrictions can provide the domestic industry with time to adjust and become more competitive. Permanent import restrictions may not be the best solution as they could lead to protectionism and retaliation from other countries. The infant industry argument may not apply in this case if the industry is already established. Additionally, providing tax breaks for the domestic industry may not address the root cause of the problem, which is the inability to compete with lower-priced imports.

If an Established Domestic Industry Is in Jeopardy of Being