The Chinese protected its automobile industry through restrictive tariffs and quotas. Which of the following BEST describes this practice?

Question

Quizplus · Accepted Answer

Infant industry protection refers to the practice of protecting a newly established industry from foreign competition by implementing protective measures such as tariffs and quotas. This is often done to allow the industry to develop and gain a competitive advantage before being exposed to international competition. In this case, China's automobile industry is considered an "infant industry" and was protected through restrictive tariffs and quotas to allow it to grow and compete with established foreign automakers.

The Chinese Protected Its Automobile Industry Through Restrictive Tariffs and Quotas