The Main Problem with Using the Infant Industries Argument to Justify

question 109

Multiple Choice

The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that:

• A) all industries will claim that they are infant industries in order to gain protection.
• B) the protected industry will become too efficient and drive out foreign competition.
• C) once in place, it is difficult to remove protection even as the industry matures.
• D) it causes the goods that are produced in the protected industry to have lower prices.
• E) this policy compromises national security if the infant industry produces military goods.

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Definitions:

Fertilization Cone

A cellular structure that extends from a sperm to penetrate and fertilize an egg cell.

Egg Membrane

The protective outer layer surrounding an egg cell, which can include structures like the chorion in birds or the zona pellucida in mammals.

Early Gastrula

A stage in embryonic development following blastula, characterized by the formation of the primitive gut and the establishment of germ layers.

Late Blastula

A stage in embryonic development characterized by a spherical layer of cells (the blastoderm) surrounding a fluid-filled cavity (the blastocoel).