For infant industry tariff protection to be valid requires that
A) the tariff must be allowed to last forever.
B) only industries that currently are producing efficiently should be protected.
C) government officials must predict which industries will eventually be able to compete with more established foreign producers.
D) the industries protected must have substantial monopoly power in the absence of foreign competition.

Question

Quizplus · Accepted Answer

For infant industry tariff protection to be valid, it's essential that government officials identify and support industries that have the potential to become competitive in the global market over time. This approach does not require tariffs to last indefinitely, nor does it apply exclusively to industries that are already efficient or have significant monopoly power without foreign competition.

For Infant Industry Tariff Protection to Be Valid Requires That