During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. Their comments are based on the
A) infant-industry argument.
B) goal of equalizing the nation's balance of payments.
C) national self-sufficiency argument.
D) goal of protecting the health of citizens.
E) goals of retaliating for another nation's trade restrictions.

Question

Quizplus · Accepted Answer

The comments made by the company presidents suggest that they are advocating for the infant-industry argument, which proposes that new industries require protection from foreign competition until they are strong enough to compete on their own. This argument was first put forth by Alexander Hamilton in the United States and has been used by many countries to protect and nurture their domestic industries.

During a Stormy Meeting of Computer Software Firms, Several Company