Final answer:
A counter-argument to the infant industry rationale for protectionism is that it may prevent industries from maturing and innovating by insulating them from competition, leading to higher consumer prices and loss of economic benefits from trade.
Step-by-step explanation:
The infant industry argument suggests that new industries should be protected from international competition to grow and become competitive. However, a counter-argument is that protectionism often leads to industries that do not mature successfully, remain dependent on subsidies, and fail to innovate due to lack of competition. Furthermore, protectionism can result in higher prices for consumers and a loss of economic gains from comparative advantage and economies of scale. These points serve as compelling arguments against the infant industry rationale for protectionism, as they indicate that long-term protectionism can hinder industry and competition, rather than fostering it.