What Is the Infant-Industry Argument for Protection from International Trade

question 132

Multiple Choice

What is the infant-industry argument for protection from international trade?

• A) Domestic firms must be protected until they gain a comparative advantage.
• B) Any firm necessary in wartime must be protected.
• C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.
• D) Domestic jobs must be protected from competition from low-paid foreign workers.
• E) Foreigners selling products in the economy limit the nation's diversity and stability.