a government should use subsidies to support promising firms that are active in newly emerging industries…

a government should use subsidies to support promising firms that are active in newly emerging industries, according to the ____ argument.\n\n a. mature industry\n b. infant industry\n c. declining industry\n d. strategic industry\n e. strategic trade policy

a government should use subsidies to support promising firms that are active in newly emerging industries, according to the ____ argument.\n\n a. mature industry\n b. infant industry\n c. declining industry\n d. strategic industry\n e. strategic trade policy

Answer

Brief Explanations:

The infant - industry argument suggests that a government should use subsidies to support new and emerging firms. These firms are in their early stages and need protection and support to grow and compete in the long - run against established foreign competitors.

Answer:

B. infant industry