Question

______ is theoretically possible, even sensible: give an industry a short-term indirect subsidy through protection, and then reap the long-term economic benefits of having a vibrant healthy industry.

Answer 1

Answer:

The answer is: Infant industry argument

Explanation:

The infant industry argument is a theory that justifies the domestic trade protectionism. According to this theory, new industries in the developing nations should be protected from the well-established international competitors until they mature, become stable and are able to compete competitively.

The common methods to protect an infant industry are production subsidies, tariffs, quotas on imported goods and import duties.