Question

The argument for import protection in developing countries to bring about industrialization differs from the infant-industry argument in that ________.

A) the success of such a policy is judged on the ability to become more independent of other countries
B) the emphasis is on labor-intensive production
C) the emphasis is on using locally available raw materials
D) it presumes there will be economic gains even if output does not become internationally competitive

Answer 1

D) it presumes there will be economic gains even if output does not become internationally competitive

Step-by-step explanation:

The argument for import protection in developing countries to bring about industrialization differs from the infant-industry argument in that it presumes there will be economic gains even if the output does not become internationally competitive. International competitiveness is a step of the relative cost of services/goods from a nation. Countries that can provide a similar quality of goods at a cheaper cost are stated to be extra competitive.