Question

according to the ______ argument, many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries there cannot initially compete with well - established industries in developed countries. to allow manufacturing to get a toehold, the argument is that governments should temporarily support new industries (with tariffs, import quotas, and subsidies) until they have grown strong enough to meet international competition.

a. proprietary industry
b. infant industry
c strategic industry
d. mature industry
e. strategic trade policy

Explanation:

The infant - industry argument posits that new industries in developing countries need temporary government support like tariffs, import quotas, and subsidies to grow and compete internationally as they cannot initially compete with well - established industries in developed countries.

Answer:

B. infant industry