The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?
A) the cheap foreign labor argument
B) the infant-industry argument
C) the dumping argument
D) the saves jobs argument

Question

Quizplus · Accepted Answer

The infant-industry argument suggests that protectionist measures should be in place to nurture new domestic industries until they become mature enough to compete internationally. The idea of dynamic comparative advantage refers to the potential of domestic industries to develop and become competitive over time, thus providing a justification for temporary protectionism. The other options (A, C, and D) do not directly relate to dynamic comparative advantage.

The Idea of Dynamic Comparative Advantage Is the Basis for Which