Question
Question 2 The belief that a country's emerging industries need protection from international competition during their development phase is an example of __ the infant industry argument a local content requirement the political motive of a country a normal trade relation 1/1 pts
Answer
4.3
(197 Votes)
Thaddeus
Elite · Tutor for 8 years
Answer
the infant industry argument
Explanation
This question is about the various economics concepts and theories concerning trade relations amongst countries. The 'infant industry argument' is an economic theory that advocates for the protection of new, budding industries from the severe competition that may be posed by international competitors until such time as the new industry has had time to grow, stabilize, and compete effective. Alternatives like the 'local content requirement' describes a rule dictating how much of a product/service must be of local origin. 'The political motive of a country' though not specifically an economic theory, could reflect an approach to prioritize domestic enterprises. 'Normal trade relation' speaks to a general status given by one nation to another regarding equitable trade conditions, generally tied to the lowest possible tariffs. As the question describes the first scenario - the belief that emergent industries need protection during their development - is thus in line with the infant industry argument.