The Industrialization Argument for Trade Protection in Developing Countries Is

Multiple Choice

The industrialization argument for trade protection in developing countries is based on the assumption that ________.

A) the protected industry will become competitive over time with economies of scale
B) unemployment and underemployment exists in rural areas, so little agricultural output is lost as people move into industrial jobs
C) subsidizing production is a better means of protection than limiting imports
D) it is better to depend on buying agricultural surpluses from developed countries than to produce these agricultural goods