The Infant Industry Argument Is Criticized Because It Relies on an Assumption

question 93

Multiple Choice

The infant industry argument is criticized because it relies on an assumption that

• A) new manufacturing industries in developing nations can initially compete with established industries in developed countries.
• B) selling goods in a foreign market at below their "fair" market value is legally and ethically justified.
• C) the domestic industry in a developing nation lacks the capacity to meet demand.
• D) firms are unable to make efficient long-term investments by borrowing money from the domestic or international capital market.

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Definitions:

Biologically Based Drives

Innate urges stemming from biological needs, such as hunger, thirst, and the desire for sexual activity.

Longitudinal Research

A research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time.

Cross-Sectional Research

A research design in which data is collected from a population, or a representative subset, at one specific point in time to examine a phenomenon.

Correlation

A statistical measure that represents the extent to which two or more variables fluctuate together, though it does not imply causation.