The Rationale for the Infant-Industry Argument for Trade Protection Is

question 65

Multiple Choice

The rationale for the infant-industry argument for trade protection is that ________.

• A)incubator centers in which business, government, and academia cooperate will develop entrepreneurial companies
• B)a country should give one firm in an industry a monopoly status so that it will grow large enough to be competitive internationally
• C)it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period
• D)lower restrictions should be placed on products coming from countries where a government has a large sphere of political influence

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Definitions:

Chapter 11 Reorganizations

A provision under U.S. bankruptcy law that allows businesses to restructure their debts while continuing their operations.

Corporate Debtors

Businesses or corporations that owe money to creditors.

Governmental Entities

Organizations or bodies that are part of the governmental structure, including agencies, departments, and certain public enterprises, responsible for implementing and enforcing laws.

Liquidation Proceeding

A legal process through which a business closes its operations and sells its assets to pay creditors.