The contention that tariffs should be imposed to protect from import competition an industry that is trying to get started is
A) a basic argument for free trade.
B) the infant industry argument.
C) dumping.
D) a voluntary restraint agreement.

Question

Quizplus · Accepted Answer

The argument that tariffs should be imposed to protect an industry that is trying to get started is known as the infant industry argument. It suggests that new industries in a country require protection from established foreign competitors until they become strong enough to compete on their own. This argument is often used to justify protectionist measures, such as tariffs, in the early stages of the development of an industry.

The Contention That Tariffs Should Be Imposed to Protect from Import