Define protectionism and identify the industries that are typically protected. Explain the "infant industry" argument for protectionism

What will be an ideal response?

Answer: Protectionism is defined as the attempt by a national government to protect certain of its designated industries from foreign competition. Industries that are protected are usually related to defense, agriculture, and "infant" industries.
The traditional protectionist argument is that newly emerging, "infant" industries need protection from foreign competition until they can get firmly established. The infant industry argument is usually directed at limiting imports, but not necessarily MNEs. In fact, most host countries encourage MNEs to establish operations in new industries that do not presently exist in the host country. Sometimes the host country offers foreign MNEs "infant industry" status for a limited number of years. This status could lead to tax subsidies, construction of infrastructure, employee training, and other aids to help the MNE get started. Host countries are especially interested in attracting MNEs that promise to export, either to their own foreign subsidiaries elsewhere, or to unrelated parties.