According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?
Correct answer: B. infant industry argument
- A. scientific tariff argument
- B. infant industry argument
- C. beggar they neighbor argument
- D. foreign dumping argument
Explanation
The infant-industry argument supports temporary protection for new domestic industries until they develop economies of scale, skills, and efficiency. The other arguments concern different rationales for protection.
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