Question

n the​ 1950s, Ford and General Motors established a small​ car-producing industry in Australia and argued for a high tariff on car imports. The tariff has remained through the years. Until​ 2000, the tariff was 22.5 percent. What might have been​ Ford's and General​ Motors' argument for the high​ tariff? Is the tariff the best way to achieve the goals of the​ argument? ​Ford's and General​ Motors' argument for the high tariff was most likely​ _______. A. that a tariff brings diversity B. the​ infant-industry argument C. the national security argument D. the dumping argument E. that a tariff penalizes lax environmental standards in other countri

Answer 1

Answer:

The correct answer would be option B, The infant industry argument.

Explanation:

Ford and General Motors established a small cal producing industry in Australia in 1950s and argued on a high tariffs on car imports. Until 2000 the tariff remained though the years and at 2000 it was 22.5 percent. So Ford and General Motor's argument was most likely the Infant industry argument. Infant industry argument is the series of arguments which states that a small industry should be nurtured just like infants until it reaches the pace that other industries have in the market at the moment. It means that the small new industry should be protected until they can attain similar scale of economies.