ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Free trade is bad for the environment The rigorous exploitation leads to a depletion of resources, which has severe negative long-term effects on the local environment. It also means that the resources are no longer available for the local population, leading to negative impacts on the local economy.

Detailed explanation-2: -The infant industry argument, a classic theory in international trade, states that new industries require protection from international competitors until they become mature, stable, and are able to be competitive. The infant industry argument is commonly used to justify domestic trade protectionism.

Detailed explanation-3: -The practice of the infant industry argument is being criticized because the new industries to whom protection is provided become inefficient since they do not face competition from the foreign markets. Also, such protections are difficult to take back once imposed, which is not a good thing.

Detailed explanation-4: -The valid counterargument to the infant industry argument for protective tariffs is that it might affect the exports of other countries from which they were importing, hindering trade relations with the possibility of eventually leading to a trade war.