Why Is It Impossible That All Industries in a Developing

question 7

Multiple Choice

Why is it impossible that all industries in a developing country qualify as infant industries?

• A)You cannot have a comparative advantage in everything.
• B)You cannot have an absolute advantage in everything.
• C)This would violate international law.
• D) This would reduce the terms of trade.

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Definitions:

Closed-shop Agreement

A labor agreement requiring employees to be members of a union as a condition of employment, typically illegal in the U.S. under the Taft-Hartley Act.

Resistance Point

The maximum point of opposition or pushback in negotiations or discussions.

Pay Increase

An upward adjustment in an individual's salary or wages, often recognized as a reward for performance or due to changes in market conditions.

Labor Negotiations

The process of collective bargaining between employers and employees (or their representatives) over wages, working conditions, benefits, and other aspects of workers' compensation and rights.