What are the advantages and disadvantages of protecting an infant industry?

1. What are the advantages of and disadvantages of protecting an infant industry?
2. What are the disadvantages of protecting an infant industry?
3. What are the benefits of infant industry argument?
4. How does infant industry protection benefit a country?
5. What is protecting infant industries?
6. What are the advantages and disadvantages of protectionism?
7. What is the infant-industry argument for protection from international trade quizlet?
8. Why does the government protect local industries?
9. Which of the following describes the infant industry argument?
10. Which industries are protected by economy?
11. What is most likely to happen when firms in an import competing infant industry are offered subsidies?
12. Would you Favour the idea of offering protection to the domestic industry?

What are the advantages of and disadvantages of protecting an infant industry?

An advantage would be the ability for the infant industry to grow without competition. But two disadvantages would be that too much protection would cause a lack of incentive in the infant industry to become more efficient and also, once that protection is provided, it is hard to withdraw it.

What are the disadvantages of protecting an infant industry?

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 are the benefits of infant industry argument?

Advantages of Infant Industry Argument

It helps the economy to gain self-dependence in terms of production and reduces its reliance on foreign markets. When the new industries are protected, and they grow, they bring new employment opportunities in place.

How does infant industry protection benefit a country?

Thus by protecting infant industries a government might facilitate more rapid economic growth and a much faster improvement in the country's standard of living relative to specialization in the country's static comparative advantage goods.

What is protecting infant industries?

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 advantages and disadvantages of protectionism?

Advantages to trade protectionism include the possibility of a better balance of trade and the protection of emerging domestic industries. Disadvantages include a lack of economic efficiency and lack of choice for consumers. Countries also have to worry about retaliation from other countries.

What is the infant-industry argument for protection from international trade quizlet?

What is the infant-industry argument for protection from international trade? Domestic firms must be protected until they gain a comparative advantage.

Why does the government protect local industries?

A protectionist trade policy allows the government of a country to promote domestic producers, and thereby boost the domestic production of goods and services. Also, GDP can be used to compare the productivity levels between different countries.

Which of the following describes the infant industry argument?

Which of the following best describes the infant industry argument? It states that a country's emerging industries need protection from international competition during their development until they become sufficiently competitive. Which of the following industries is typically protected for national security reasons?

Which industries are protected by economy?

protectionism, policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors.

What is most likely to happen when firms in an import competing infant industry are offered subsidies?

What is most likely to happen when firms in an import-competing infant industry are offered subsidies? a. The firms will suffer from diseconomies of scale. ... The firms will be able to sustain only if they charge a higher price than the foreign firms.

Would you Favour the idea of offering protection to the domestic industry?

Answer: ADVERTISEMENTS: Protection aims at helping some industries against foreign competition. This is done either through duties on imported goods, or bounties to domestic producers. An import duty makes the foreign articles sell at higher prices and so helps the home manufactures.