"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions.
A) national-defense
B) infant-industry
C) anti-dumping
D) tariff
E) none of the above

Question

Quizplus · Accepted Answer

The statement refers to the argument of infant-industry, which suggests that new industries need protection from foreign competition until they become mature and competitive. This protection can be in the form of trade restrictions such as tariffs or quotas. The rationale is that without this protection, they would not be able to survive in the face of established and efficient foreign competitors, and the country would miss out on the potential benefits of having a thriving industry.

"New Industries Need to Be Protected or They Won't Have