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Why Might Infant Industry Protection of the Chinese Automobile Industry

Question 163

Multiple Choice

Why might infant industry protection of the Chinese automobile industry be considered successful?


A) Many foreign auto producers established operations in China behind the high infant industry tariff protection.
B) The tariff rate on Chinese imports of automobiles fell from 260% in the early 1980s to about 25% today.
C) Chinese demand for automobiles increased dramatically in the past 20 years.
D) China has become the world's second largest consumer of autos.

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