Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.This statement describes the ________ argument for protectionism.
A)diseconomies of scale
B)protecting national security
C)anti-dumping
D)infant industry

Question

Quizplus · Accepted Answer

The statement describes the infant industry argument for protectionism, which argues that new domestic industries need temporary protection from international competition to mature and become successful. During this period, domestic producers can gain experience, lower their unit costs, and become more competitive in international markets. Once they have achieved economies of scale and can compete successfully in the international market, the temporary protection can be removed.

Domestic Producers Require Time to Gain Experience and Lower Their