Problem
1. Why is it necessary to use a market failure to justify the use of infant industry protection?
2. What is a positive externality? Explain the argument of knowledge spillovers as a potential reason for infant industry protection.
3. If infant industry protection is justified, is it better for the Home country to use a tariff or a quota, and why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.