Question

The infant industry argument says that Question 7 options: tariffs should be imposed to allow a new industry in a country to get established. imports should target new products from other countries to take advantage of the transmission of new ideas. dumping should be allowed in order to establish a presence of an industry that has previously not had a presence in another country. countries should produce and trade goods according to their comparative advantage.

Answer 1

Answer:

The infant industry argument says that Question 7 options:

tariffs should be imposed to allow a new industry in a country to get established.

Explanation:

The argument for the infant industry protectionism suggests that the imposition of tariffs on imports gives a new industry in the country the required breathing space it requires to develop, grow, and be established before it can face competitive forces from outside, which imports imply.  Since newly formed industries often do not command the economies of scale and learning experience that their competitors from other countries may have, therefore, they need to be singularly shaded from external competition until they have achieved similar economies of scale and learning curve.  But, can they attain any competitive edge without learning from competitors?