Is the Call for Protection on the Basis of "Infant

question 171

Multiple Choice

Is the call for protection on the basis of "infant industry" valid?

• A)No, because protection has no place in industrial development.
• B)No, protection is always improper.
• C)Uncertain, economic theory has no answer to this question.
• D)Yes, although it can be overstated and abused.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Current Ratio

A financial metric that evaluates a firm's capacity to meet its short-term liabilities using its existing assets.

Industry Average

The mean performance metric, such as revenue growth or return on equity, of the companies in a particular industry or sector.