PRC-3 · Chapter 20 · Question 4 of 30
A developing nation argues it must use tariffs to block cheap foreign competition so its newly established, fragile solar-panel factories can grow large enough to compete globally. Which classic protectionist argument is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Infant industry argument
Explanation
The infant industry argument suggests that new, emerging domestic industries need temporary trade protection to survive and achieve economies of scale before facing mature foreign competitors.
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