contestada

As used in strategic trade policy, tariffs are a variation of the:

a. military self-sufficiency argument for tariffs.

b. increased-domestic-employment argument for tariffs.

c. diversification-for-stability argument for tariffs.

d. infant-industry argument for tariffs

Respuesta :

Answer: Option (d) is correct.

Explanation:

Correct option: Infant-industry argument for tariffs.

The industries which are new in the market need to be protected from the competitors from the other countries which were already in the international market for a long time.

Strategic policy is used to protect the infant industries which were new in the international market. So, this policy help these industries to develop and compete with the international industries.

Once these industries fully developed and are able to achieve similar level of economics of scale, then this protection will be withdraw from the industries.