Asked by Saatvic Arora on May 18, 2024
Verified
Which is a valid counterargument to the infant industry argument for protective tariffs?
A) Protective tariffs result 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.
Infant Industry
An industry in its early stages of development, which may be protected by the government from international competition temporarily until it becomes competitive.
Protective Tariffs
Import taxes imposed by a country on foreign goods to protect domestic industries from competition by making imported goods more expensive.
Comparative Advantage
The capacity of an entity to generate a product or service with a lesser opportunity cost compared to others.
- Scrutinize the historical and current enactment of tariffs, quotas, and various protective strategies, and their implications for international trade.
- Investigate the economic justifications for adopting protectionist policies as well as the arguments against them, specifically in relation to supporting budding industries and safeguarding jobs at home.
Verified Answer
Learning Objectives
- Scrutinize the historical and current enactment of tariffs, quotas, and various protective strategies, and their implications for international trade.
- Investigate the economic justifications for adopting protectionist policies as well as the arguments against them, specifically in relation to supporting budding industries and safeguarding jobs at home.
Related questions
Which of the Following Is a Valid Counterargument to a ...
The Following Are Commonly Used Arguments for Protection Against Imports ...
Which of the Following Is a Valid Counterargument to the ...
What Is One of the Major Shortcomings of Using Tariffs ...
From an Economic Perspective, Studies of the Costs of Trade ...