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.

---

Definitions:

Research Study

A structured investigation aimed at discovering, interpreting, and revising facts, theories, applications, or processes within a specific field.

Old Sayings

Traditional phrases or proverbs that express wisdom or truth based on common sense or experience.

Precision

The degree to which repeated measurements under unchanged conditions show the same results.

Psychological Research

A field of study that employs various methodologies to investigate individual and group behaviors and the underlying psychological processes.