What is the problem with the argument that infant industries need to be protected from foreign competition?

What will be an ideal response?

Infant industry arguments rely on the idea that in industries with economies of scale, or substantial learning by doing, it is important for policymakers to protect local firms early in their development. One of the problems with this argument is that starting a company in isolation may deprive it of "technological spillovers" that its competitors, all located near one another, may enjoy—the isolated company will be the last to learn of changes in the industry.

Economics

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The Aristocrat Corporation has taken out a loan to buy manufacturing equipment. The loan represents ________ for the company

A) a bond B) a liability C) equity D) an asset

Economics

Why is the government budget constraint different between the short run and the long run?

What will be an ideal response?

Economics