A basic problem with the infant-industry argument is that
A) most industries need protection when they are mature, not when they are first established.
B) the amount of the tariff is unlikely to have much impact on the success of an infant industry.
C) political pressure will likely prevent the withdrawal of the tariff when the industry matures.
D) domestic consumers will continue to buy the foreign products anyway, regardless of the tariff.

Question

Quizplus · Accepted Answer

The infant-industry argument suggests that new industries may need protection until they become competitive. However, a major problem is that once tariffs are in place, political pressure often makes it difficult to remove them, even after the industry matures.

A Basic Problem with the Infant-Industry Argument Is That