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.

---

Definitions:

Leniency Contract

An informal agreement where one person agrees to treat another person more leniently or forgivingly than the situation may warrant.

Core Attributes

The fundamental qualities or characteristics that define an entity or concept, central to its identity or function.

Social Impact

The effect that other people have on our attitudes and behaviour, usually as a consequence of factors such as group size, and temporal and physical immediacy.

Convergent-Divergent Theory

explores the ability to generate multiple solutions to a problem (divergent thinking) versus the ability to find the single best solution (convergent thinking).