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- Tariffseconomics-mcqs › tariffs
- Published
- 28 May 2019
- Last updated
- 28 May 2026
Which argument supports the use of tariffs to protect emerging industries from foreign competition until they become competitive and efficient?
Multiple choice question for Tariffs. Select an option, then review the explanation below.
Explanation
The infant industry argument advocates for tariffs to safeguard new industries against international competitors until they develop the strength and efficiency to compete independently. Other options like the scientific tariff rationale, beggar-thy-neighbor approach, and foreign dumping theory do not focus on protecting nascent industries in this manner.
More Tariffs MCQs
Practice related questions from the same subject.
- 1.Under a free trade system, what is the total worth of imports?
- 2.What do empirical studies generally indicate about the nature of U.S. import tariffs?
- 3.Which of the following statements about government trade policies is NOT typically true?
- 4.If the nominal tariff on finished computers is 12% and the weighted average nominal tariff on the inputs for making computers is 18%, what can be said about the effective rate of protection for the computer sector?
- 5.If Pakistan applies a tariff on ballpoint pens consisting of 25 rupees per pen plus 12% of the pen's price, what type of tariff is this an example of?