The infant industry argument can be justified because
A)A new industry may never develop in a protected,noncompetitive environment.
B)The government may not be able politically to end protectionism even when protectionism is no longer justified.
C)Government may choose to protect industries,which places heavy import burdens on the economy.
D)A new industry may be difficult to start in the face of existing foreign competition.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new industries may struggle to establish themselves against established foreign competitors without some form of protection, such as tariffs or subsidies, to temporarily shield them from the full force of international competition. This allows them to develop and become competitive over time.

The Infant Industry Argument Can Be Justified Because