An Example of the "Infant Industry" Argument for Trade Protection

question 44

Multiple Choice

An example of the "infant industry" argument for trade protection is that

• A)tariffs should not be imposed on countries that have democratic governments.
• B)imports of certain products should be limited in the interests of national defense.
• C)"strategic" trade policy is helpful when other countries are also being strategic.
• D)all tariffs should be eliminated in order to maximize the gains from trade.
• E)in the presence of unexploited scale economies, tariff protection may permit a country to develop future comparative advantage in certain products.

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Definitions:

Ethical Principle

Fundamental guidelines or rules that are adopted and followed by individuals or societies to determine what behaviors are considered right, wrong, good, or bad.

Anecdotal Evidence

Evidence based on personal accounts, observations, or stories, which may not be scientifically proven or reliable.

Reporting Biases

Distortions in reported information, often due to selective revelations or suppression of certain details, which can affect the reliability of data.

Journal Article

A piece of writing published in a scholarly journal, usually peer-reviewed, that presents original research findings or reviews existing research in a specific field.