Which Is a Valid Counterargument to the Infant Industry Argument

question 87

Multiple Choice

Which is a valid counterargument to the infant industry argument for protective tariffs?

• A)Protective tariffs result in too many benefits for domestic firms that export goods and services.
• B)It is difficult to determine which infant industries will become mature industries with a comparative advantage.
• C)The objective would be better achieved through strategic trade policy.
• D)The objective would be better achieved by import quotas and nontariff barriers.

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Definitions:

Journal Entries

The method of recording financial transactions where each transaction is noted in two accounts in the ledger to maintain the accounting equation's balance.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy and completeness of the records.

Erroneously Charged

Incorrectly or mistakenly billed for goods or services, leading to inaccurate financial transactions.

Bank Statement Balance

The ending cash balance as recorded in the bank's records at the end of a reporting period.