The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition
A) industries that are essential if a country is to become an industrial nation.
B) industries needed for national defense.
C) industries that cannot compete with foreign competitors at this point in time, but will be able to once they gain some size and experience.
D) industries that can compete with foreign competitors at this point in time and are deemed essential by the government.

Question

Quizplus · Accepted Answer

The infant-industry argument for tariff protection is that tariffs should be imposed to protect industries that cannot compete with foreign competitors at this point in time, but will be able to once they gain some size and experience. The idea is that by providing temporary protection, domestic firms can use this period to achieve the scale and efficiency necessary to compete in the global market without the risk of being obliterated by foreign competitors in the short-term.

The Infant-Industry Argument for Tariff Protection Is That Tariffs Should