Problem with the infant-industry argument for protection

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Reference no: EM132170010

1. Under a common law system, there are three types of property rights that are recognized and protected by the law:

a. Real, personal, and international

b. Individual, business, and international

c. Real estate, land, and personal

d. Legal, real, and constitutional

e. Real, personal, and intellectual

2. Which of the following are compelling reasons for companies to engage in international business:

a. Increased competition and lower profit margins

b. Shortened product lifecycle and increasing risks

c. Decreased competition and increased innovation

d. Expanded product life cycle and increased innovation

e. All of the above

3. Which of the following is a problem with the infant-industry argument for protection?

a. Most developed countries increasingly have a larger portion of retirees than youth

b. Consumer groups become very active in protesting the higher prices that result during infancy.

c. Other countries retaliate by limiting exports of technology needed by the infant industry producers.

d. If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.

Reference no: EM132170010

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