The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?
A)the cheap foreign labour argument
B)the infant-industry argument
C)the dumping argument
D)the saves jobs argument
E)the prevents rich countries from exploiting developing countries argument

Question

Quizplus · Accepted Answer

The infant-industry argument is based on the idea of dynamic comparative advantage, which suggests that a country's comparative advantage may change over time with the development of new technologies and industries. The argument for protectionism under this concept is that newly emerging industries in a developing country may need temporary protection from foreign competition in order to become established and competitive in the global market.

The Idea of Dynamic Comparative Advantage Is the Basis for Which