BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

Solutions

Chapter
Section
BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are Industries like computers not good candidates for infant industry protection?

To determine

The criteria for identifying good candidates for infant industry protection. The reasons why the industries like computers not good candidates for infant industry protection.

Explanation

Protectionism refers to the policy of the government of a country restricting free trade for various purposes. Protectionism is practiced for protecting domestic producers and workers from foreign competition. It is generally followed by developing countries to shield small producers from foreign competition. Protecting infant industries is a type of protectionism policy.

Infant industries argument: Infant industries are the term used for nascent industries i.e. industries that are newly established and not competitive enough to compete in international market. It is argued that infant industries should be protected from foreign competition until they grow and become mature enough to be able to compete in international market. This can take place through either restricting import of goods specific to that industry or by providing subsidies to infant industries for a given time period. For example, subsidies to steel and automobile industry in Korea and Japan helped them rise to global level...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

CAPM AND REQUIRED RETURN HR Industries (HRI) has a beta of 1.8, while LR Industries (LRI) beta is 0.6. The risk...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Describe the accounting for changes and corrections of depredation.

Intermediate Accounting: Reporting And Analysis