Which of the Following Statements Is True About Protection of an Infant

question 34

Multiple Choice

Which of the following statements is true about protection of an infant industry?

• A)Governments can impose temporary trade barriers on foreign imports to ensure that young firms gain a large share of the domestic market.
• B)Such protection is easy to remove.
• C)Protected companies become more efficient and produce products with lower prices.
• D)Protecting infant industries rarely allows countries to develop a modern industrial sector.

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Definitions:

Cash Inflows

Cash inflows refer to the movement of money into a company's accounts from various sources, including sales, financing, or investment.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Net Present Value

A financial metric that calculates the value of future cash flows in today’s dollars, assessing profitability of investments or projects.

Expected Future

Anticipating the conditions that will be in the future, often used in planning and forecasting in various contexts.