Which argument against free trade supports the protection of emerging industries?
Understand the Problem
The question is asking which specific argument against free trade advocates for the protection of emerging industries. It presents four options to choose from, and we need to identify the correct one related to supporting vulnerable new industries.
Answer
Infant industry argument
The argument against free trade that supports the protection of emerging industries is the infant industry argument. It suggests that new industries may require protection through tariffs or quotas to develop and prosper.
Answer for screen readers
The argument against free trade that supports the protection of emerging industries is the infant industry argument. It suggests that new industries may require protection through tariffs or quotas to develop and prosper.
More Information
The infant industry argument suggests that new firms need temporary protection from foreign competition to become competitive themselves.
Tips
Misunderstanding the temporary nature of protection needed for infant industries can be a common mistake. It is intended only for the formative period of the industry.
Sources
- Justifications for Trade Restriction - Lumen Learning - courses.lumenlearning.com
- Arguments against free trade - Economics Help - economicshelp.org
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