Which Is a Valid Counter-Argument to the Infant Industry Argument

question 140

Multiple Choice

Which is a valid counter-argument to the infant industry argument for protective tariffs?

• A) It results in too many benefits for domestic firms that export goods and services
• B) It is difficult to determine which infant industries will become mature industries with a comparative advantage
• C) The objective would be better achieved through strategic trade policy
• D) The objective would be better achieved by import quotas and nontariff barriers

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