Which of the Following Is a Problem with the Infant-Industry

question 15

Multiple Choice

Which of the following is a problem with the infant-industry argument for protection?

• A)Most developed countries increasingly have a larger portion of retirees than youth.
• B)Consumer groups become very active in protesting the higher prices that result during infancy.
• C)Other countries retaliate by limiting exports of technology needed by the infant industry producers.
• D)If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Net Margin

A profitability metric calculated as net income divided by revenue, expressing the percentage of revenue that remains as profit after all expenses are deducted.

ISO 9000

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements required for maintaining an efficient quality system.

International Marketplace

The global economic environment in which businesses operate, allowing for the exchange of goods and services across national borders.