Infant Industry Protection Aims to Foster Domestic Growth

Steps:

• Identify the purpose of infant industry protection: shielding new domestic industries from foreign competition to allow maturation.
• Link protection to outcomes: reduced import competition enables domestic firms to expand production without immediate threats.
• Evaluate choices: focus on positive effects like job creation rather than negatives like reduced competitiveness.
• Select the intended benefit: increased domestic activity leads to more hiring.

Why C is correct:

• Infant industry argument, per economic theory (e.g., Alexander Hamilton's policies), protects nascent firms to build scale, directly increasing domestic employment as production ramps up.

Why the others are wrong:

• A: Protection aims to build, not decrease, domestic competitiveness over time.
• B: It focuses on domestic growth, not altering export demand.
• D: Protection restricts imports to limit foreign supply, not increase it.

Final answer: C