Which of the Following Is an Infant-Industry Argument in Favor

question 34

Multiple Choice

Which of the following is an infant-industry argument in favor of restrictions on foreign trade?

• A) Foreign producers must be stopped from selling their products in this country below cost of production.
• B) Domestic workers must be protected from the lower wages paid in foreign countries.
• C) The nation's security demands we ensure an adequate domestic supply capacity of certain products.
• D) Do unto others as they do unto you.
• E) Industries in the early stages of development must be protected from more mature producers.

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Definitions:

Corporate Venture Capitalists

Investors affiliated with a corporation that provides capital to startup companies with potential for high growth, often in exchange for equity and with strategic interests in mind.

Risk-Averse

A characteristic of preferring to avoid risk, opting for safer, more certain outcomes over potentially higher yet uncertain returns.

Promising Young Companies

Emerging businesses that show potential for significant growth and success in their industry.

Mezzanine Financing

A hybrid form of capital typically used in late-stage financing composed of debt and equity, ranking between senior debt and equity in terms of claim on assets.