To make a correct decision about limiting imports on behalf of an infant industry, a government should look at:

Question

Quizplus · Accepted Answer

A cost-benefit analysis that considers the present value of the benefits of lower production costs compared to the cost to society of higher prices in the present is the most appropriate approach to determine whether to limit imports. Political pressure and the retention of jobs are important factors but should not be the only considerations. The difficulty of keeping out imports from established trading partners and the number of workers employed in the industry are also important but should not be the sole determinant of the decision. A comprehensive cost-benefit analysis provides an objective basis for making the decision.

To Make a Correct Decision About Limiting Imports on Behalf