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The Infant Industry Argument for Protectionism Is Based on the Concern

Question 132

Multiple Choice

The infant industry argument for protectionism is based on the concern that:


A) firms in an economy will not grow unless the economy is highly diversified.
B) the growth of an industry that is new to a nation will be too rapid unless trade restrictions are imposed.
C) foreign buyers will absorb all of the output of domestic producers in a growing industry unless trade restrictions are imposed.
D) firms in a newly developing domestic industry will have difficulty growing if they face strong competition from established foreign firms.

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