For the Infant-Industry Argument for Tariffs to Be Appropriate, It

question 120

Multiple Choice

For the infant-industry argument for tariffs to be appropriate, it is necessary that

• A) the industry be deemed essential by the government.
• B) the government can identify which industries will eventually be able to compete with more established foreign producers.
• C) only industries that currently are operating efficiently will be protected.
• D) the country has access to the most modern production techniques.

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Definitions:

Venture Capital

Funding provided by investors to startups and small businesses that have a high potential for long-term growth.

Funding Stages

The various phases of financial support provided to startups and businesses, which typically progress from seed funding to later-stage investments.

Dutch Auction IPO

A method of initial public offering in which the price of the shares is determined after taking in all bids and finding the highest price at which the total offering can be sold.

Private Placements

The sale of securities to a relatively small number of select investors as a way of raising capital.