The Main Problem with Using the Infant Industries Argument to Justify

question 70

Multiple Choice

The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that

• A) all industries will claim that they are infant industries in order to gain protection.
• B) the protected industry will become too efficient and drive out foreign competition.
• C) once in place, it is difficult to remove protection even as the industry matures.
• D) it causes the goods that are produced in the protected industry to have lower prices.

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Definitions:

Legislation

Laws that have been enacted by a governing body or the process of making or enacting laws.

Select

To choose or pick from a group, often implying careful choice or preference.

Conference

A formal meeting for discussion, often focusing on a specific area of interest or professional field, involving presentations and exchanges of information.

Budget

A financial plan outlining expected revenue and expenditure over a specified period, often used by businesses, individuals, and governments to manage resources.