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Asked by Ryane Smalley on Apr 29, 2024

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Which of the following statements is true of the infant industry theory?

A) It argues that adoption of the free trade policy is the best way to empower infant industries.
B) It proposes the idea that new industries generate more revenue than existing ones.
C) It states that all new industries need to be well established from the start to compete against foreign firms.
D) It argues that certain emerging industries need to be protected for a period of time.

Infant Industry Theory

An economic rationale for trade protectionism arguing that emerging domestic industries need protection from international competition until they become mature and competitive.

Protected

Safeguarded from harm or damage through legal, physical, or other means.

Emerging Industries

Sectors or industries that are in the early stages of development and show potential for significant growth and innovation in the future.

  • Determine the tactics and frameworks associated with safeguarding nascent sectors.
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AC
Alvira Chayne FloresApr 29, 2024
Final Answer :
D
Explanation :
The infant industry theory suggests that emerging industries may need temporary protection from international competition to develop and become competitive. This can involve tariffs, quotas, or other trade barriers to shield the nascent industries from established foreign competitors.

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