The food processing industry in Warzoa has just started developing, and there is potential for the industry to flourish in the near future. However, there is stiff competition from foreign producers who supply processed food in the domestic market. Which of the following arguments would justify the imposition of a tariff on the import of processed food in Warzoa?

Question

Quizplus · Accepted Answer

The infant industry argument justifies imposing a tariff on imported processed foods in Warzoa as it would help protect the fledgling domestic food processing industry and give it time to grow and become competitive. This argument assumes that the domestic industry is at a disadvantage compared to more established foreign competitors and needs temporary protection to survive and develop. The other arguments are not relevant in this context.

The Food Processing Industry in Warzoa Has Just Started Developing