Which of the following statements is TRUE about protection of an infant industry?
A) Governments can impose temporary trade barriers on foreign imports to ensure that young firms gain a large share of the domestic market.
B) Such protection is easy to remove.
C) Protected companies become more efficient and produce products with lower prices.
D) Protecting infant industries rarely allows countries to develop a modern industrial sector.

Question

Quizplus · Accepted Answer

Protection of infant industries often involves governments imposing temporary trade barriers on foreign imports to help young domestic firms gain a larger share of the domestic market. This strategy is aimed at allowing these firms to grow and become competitive without being overwhelmed by established foreign competitors.

Which of the Following Statements Is TRUE About Protection of an Infant