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

These activities include transactions and events that affect the long-term liabilities and equity of an entity, such as issuing debt or equity securities.

Investing Activities

Activities reported on the cash flow statement that relate to the acquisition and disposal of long-term assets and other investments not considered cash equivalents.

Indirect Method

A way of calculating cash flows from operations by starting with net income and adjusting for non-cash transactions and changes in working capital.

Operating Activities

Activities that relate directly to the business's primary operations, such as sales, provision of services, production, and associated expenses.