Why Do Infant Industries Need To Be Protected? The infant-industry theory states that new industries in developing countries need protection against competitive pressures until they mature and develop economies of scale that can rival their competitors‘. Why is it important to protect infant industries? To encourage and stimulate domestic production. To promote national security and
Which Of The Following Is A Criticism Of The Infant Industry Argument? There are several criticisms of the infant industry argument: Infant industry protectionism may encourage industries to be inefficient. Developing industries that have protection may lack the incentive to be efficient and competitive. Infant industry protectionism may result in retaliation from other countries. What
What Are The Problems With Protecting Infant Sectors? There are several criticisms of the infant industry argument: Infant industry protectionism may encourage industries to be inefficient. Developing industries that have protection may lack the incentive to be efficient and competitive. Infant industry protectionism may result in retaliation from other countries. Are trade barriers good or
What Is The Infant Industry Argument For Protection? The infant-industry theory states that new industries in developing countries need protection against competitive pressures until they mature. This theory, first developed in the early 19th century by Alexander Hamilton and Friedrich List, is often a justification for protectionist trade policies. What are the infant industry and