Industries That Use the Infant Industry Argument Often Claim That

question 59

Multiple Choice

Industries that use the infant industry argument often claim that:

• A) the protection is only needed on a temporary basis.
• B) they will use the time during which they are protected to modernize and become more competitive.
• C) industries already established in other countries have a comparative advantage.
• D) All of the above.

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Definitions:

Direct Materials

Basic substances used explicitly in the manufacturing of certain products or services.

Production Budget

A financial plan that outlines the cost of producing the goods or services a company plans to sell, including direct labor, materials, and overhead.

Denim Material

A durable, woven fabric commonly used for making jeans and other clothing items, characterized by its indigo blue color.

Budgeted Production

The planned amount of goods to be produced over a certain period, often based on demand forecasts.