"New industries should be protected from older established foreign competitors until they are mature enough to compete on an equal basis." This argument for trade restrictions is called the __________ argument.
A) low-foreign-wages
B) foreign export-subsidies
C) anti-dumping
D) infant-industry

Question

Quizplus · Accepted Answer

The argument described in the statement is known as the infant-industry argument, which suggests that new industries in a country should be safeguarded from established foreign competitors until they achieve sufficient maturity to compete fairly in the international market. This argument is often utilized by developing countries to justify trade barriers, such as tariffs or subsidies, to protect their domestic industries from foreign competition.

"New Industries Should Be Protected from Older Established Foreign Competitors