What is a new market entrant in an industry mature elsewhere and government-shielded termed:
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Answer: D. infant industry
Explanation
An infant industry is a newly established domestic business protected from foreign market competition. Government shielding allows such local sectors to grow until they achieve full international competitiveness. Protectionist measures are specifically designed to nurture these developing domestic enterprises during early stages. Economists use the infant industry argument to justify temporary tariffs against established foreign competitors. Alexander Hamilton first formalized this protectionist economic theory in his early American financial reports. The ultimate goal of such protection is achieving economies of scale and sustainable market independence.
Developing nations frequently implement these trade policies to foster domestic manufacturing and industrial growth. Governments must eventually remove protective barriers so industries learn to compete in global markets. Improperly managed protection can lead to permanent inefficiencies and lack of innovation within sheltered sectors. Start-up firms are newly launched entrepreneurial businesses not necessarily granted special government trade protection. Service industries encompass a broad economic sector rather than specifically denoting government-shielded new market entrants. Venture capital firms provide financial investment to growing businesses instead of representing the protected industry itself.
- Subject
- Political Science
- Category
- International Relations
- Topic
- —
- Difficulty
- medium
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