The Infant Industry Argument Is That

question 19

Multiple Choice

The infant industry argument is that

• A) comparative advantage is irrelevant to economic growth.
• B) developing countries have a comparative advantage in agricultural goods.
• C) developing countries have a comparative advantage in manufacturing.
• D) developing countries have a potential comparative advantage in manufacturing.
• E) developing countries have no chance to compete with industrialized countries.

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Definitions:

Logistics Department

The division of a company responsible for the management of the movement and storage of materials, goods, and information.

Operating Divisions

Sections of a business organization that operate semi-autonomously, typically responsible for their own budgeting and profit and loss.

Variable Costs

Expenses that change in proportion to the level of production or sales volume.

Fixed Costs

Expenses that do not change regardless of the level of production, like leases and salaries.