For the infant-industry argument for tariffs to be appropriate, it is necessary that
A) the industry be deemed essential by the government.
B) the government can identify which industries will eventually be able to compete with more established foreign producers.
C) only industries that currently are operating efficiently will be protected.
D) the country has access to the most modern production techniques.

Question

Quizplus · Accepted Answer

The infant-industry argument for tariffs suggests that newer industries need protection from established foreign producers until they can become efficient and competitive. Therefore, it is necessary for the government to identify which industries have the potential to eventually compete with foreign producers, and provide tariffs to protect them during the initial stages of development.

For the Infant-Industry Argument for Tariffs to Be Appropriate, It