The 'Infant Industry Argument' for protectionism suggests that new, emerging domestic industries should be temporarily shielded from established foreign competitors via tariffs or quotas until they achieve economies of scale and become globally competitive.

Answer: True

First articulated by Alexander Hamilton and Friedrich List, this argument posits that developing nations cannot compete with the entrenched, highly efficient industries of developed nations. Temporary protection allows domestic firms to learn by doing, adopt new technologies, and scale up production. However, economists warn that 'temporary' protection often becomes permanent due to corporate lobbying, leading to perpetual inefficiency.