_____ refers to when a market is too underdeveloped to achieve comparative advantage.

Question

Quizplus · Accepted Answer

The concept of an infant industry refers to a new industry that is not yet fully established, and may find it challenging to compete with established industries in other countries due to a lack of economies of scale or experience. Governments may provide support or protection for infant industries until they can compete on a level playing field, in order to encourage their development and growth. This protection may come in the form of tariffs, subsidies or other measures that limit foreign competition. Therefore, if a market is too underdeveloped to achieve comparative advantage, it means it could be an infant industry.

_____ Refers to When a Market Is Too Underdeveloped to Achieve