The infant industry argument says that
A) tariffs should be imposed to allow a new industry in a country to get established.
B) dumping should be allowed in order to establish a presence of an industry that has previously not had a presence in another country.
C) countries should produce and trade goods according to their comparative advantage.
D) imports should target new products from other countries to take advantage of the transmission of new ideas.

Question

Quizplus · Accepted Answer

The infant industry argument advocates for the imposition of tariffs to protect and nurture a new industry until it is strong enough to compete globally on its own. The goal is to achieve long-term economic growth and competitiveness, even if there is a short-term cost to consumers.

The Infant Industry Argument Says That