In the "Infant Industry Argument" for protective tariffs, it usually happens that:?

Question

a) The protected industy matures at a rather fast rate and becomes sufficiently competitive so that it no longer requires tariff protection.

b) The protected industries develop slowly, requiring tariff protection for much longer than was intended, perhaps indefinately.

c) The tax revenues from the tariffs make it possible for the govenment to reduce the overall tax burden on the Canadian public.

d) The protected industries often develop into leading exporters.

e) Both (a) and (d) together.

Answer 1

b