Question

The infant industry argument suggests that

A. a country requires protection against unfair trade practices.
B. the industry has no potential and must be protected to survive.
C. an industry may require temporary tariff protection until the industry matures.
D. a country requires tariff protection when it has no comparative advantage in the production of any good

Answer 1

Answer: The argument states that "an industry may require temporary tariff protection until the industry matures."

Explanation: The argument is an principle for trade protectionism. The set center of the statement is that emergent enterprise frequently do not have the economies of scale that their competition from other nation may have, and thus they need to be secured until they can accomplish similar economies of scale.

Therefore, the correct option in this is (c)