Question

1 The infant industry argument is that:

a.protectionism promotes complete specialization in the country on the basis of comparative advantage.

b.new industries should be protected from foreign competition until they have had adequate time to develop.

c.protectionism should be used to create a level playing field for the domestic firms to compete with foreign firms.

d.developing industries should be allowed to face foreign competition.

e.those industries that produce products for infants should be protected.

 

2. One of the primary objectives of the WTO is:

a. to enable western countries to emerge as major players in international trade.

b. to redistribute wealth from the first world to the third world countries.

c. to create trade restrictions across the countries.

d. to enable certain countries to maintain their autarkic conditions.

e. to reduce trade barriers created by the different countries.