A new industry develops and we want to protect it from foreign competition.Which one of the following arguments would appropriately describe this Type of protection?
A)national security
B)cartelization
C)infant industry
D)protecting Canadian jobs

Question

Quizplus · Accepted Answer

Protecting a new industry from foreign competition is a classic example of infant industry protection. This is often done through measures such as tariffs, subsidies or import quotas until the industry has developed to a point where it can compete internationally. The main aim is to allow the industry to gain a foothold in the market and become competitive before being exposed to international competition. National security protection is aimed at protecting industries that are considered critical to the national security of a country, while cartelization protection would involve forming a cartel to dominate a market and exclude foreign competition. Protecting jobs is also a goal, but it is a secondary effect of infant industry protection rather than the primary motivation.

A New Industry Develops and We Want to Protect It