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 an infant industry involves the government imposing temporary trade barriers on foreign imports, giving young firms a chance to establish themselves in the domestic market without being overwhelmed by established foreign firms. This protection is meant to be temporary until the industry is mature enough to compete without government support.

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