Which factors are considered when evaluating the market viability of a domestic industry?

• A. Production capacity, profitability, competition, and long-term sustainability under current import conditions.
• B. Only current profits.
• C. Only export potential.
• D. Only consumer demand growth.

Answer: (A)

Evaluating market viability for a domestic industry requires a holistic view of whether the industry can supply the domestic market effectively, remain profitable, and endure over time in the face of imports. Production capacity shows if the industry can meet domestic demand without becoming import-dependent; profitability indicates whether operations are financially sustainable under current and anticipated conditions; competition reveals the market structure, pressures, and potential for price and performance pressures; and long-term sustainability under current import conditions assesses whether the industry can continue to operate and grow given the level and impact of imports over time. Together, these factors provide a complete picture of whether the domestic industry can survive and prosper.

Focusing only on current profits misses how much output the industry can actually deliver, and how durable that profitability is under changing conditions. Focusing only on export potential ignores the domestic market entirely. Focusing only on consumer demand growth ignores supply capability, competitive pressures, and long-term resilience.