Protection should be withdrawn from an infantindustry when the companies in the industry a. reach a sufficient size to compete with foreign firms. b. become profitable. c. are listed on the domestic stock exchange. d. double their sales revenues.

Protection should be withdrawn from an infantindustry when the companies in the industry

a. reach a sufficient size to compete with foreign firms.

b. become profitable.

c. are listed on the domestic stock exchange.

d. double their sales revenues.

 

 

answer:

The correct answer is A. The infant industry argument states that domestic industries should be protected until they are able to compete at the same level by the foreign companies. Thus the protection will be withdrawn when the infant firms reach a sufficient size. The correct answer is A.

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