Some Nations Try to Nurture and Encourage New Firms with Lots

question 142

Multiple Choice

Some nations try to nurture and encourage new firms with lots of promise, so they protect them from foreign competition. This is called the _________ argument for trade protection.

• A) home nation unemployment
• B) level playing field
• C) efficiency
• D) infant industry

---

Definitions:

Nontariff Barrier

Any impediment to international trade other than tariffs.

Embargoes

Government-imposed restrictions on trade with a particular country or the exchange of specific goods, often used as a political tool.

Civil Law

A legal system originating in Europe, characterized by comprehensive codified laws, in contrast to the common law system.

Legislative Branch

One of the three branches of government responsible for creating and enacting laws, typically consisting of a parliament or congress.