The Validity of the Infant Industry Argument for Protection Depends

The validity of the infant industry argument for protection depends on the following assumption, among others:

A) The protected industry will eventually be the world's low cost producer.
B) There is no market failure that prevents private individuals from carrying out investments in industries that have good prospects of gaining a comparative advantage in the future.
C) The government has accurate information about future comparative advantage at home and abroad.
D) There is foreign retaliation.

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