One problem with the infant industry argument is that
A) the protection is typically never removed, creating a domestic monopoly.
B) it fails to protect domestic industries from foreign competition.
C) it must be approved by the IMF and the World Bank.
D) it must be approved by the Federal Reserve Board.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that a new domestic industry needs temporary protection from foreign competition until it becomes mature enough to compete on its own. However, the problem with this argument is that the protection is often never removed, leading to a perpetuated domestic monopoly.

One Problem with the Infant Industry Argument Is That