„Infant Industry Argument“

What does Infant Industry Argument stand for?

The view that “temporary protection” for a new industry or firm in a particular country through tariff and non-tariff barriers to imports can help it to become established and eventually competitive in world markets, in which case the protective measures will no longer be needed.

Source:

Krugman, P.R., Obstfeld, M., & Melitz, M. J. (2015). International Economics: Theory and Policy (10th ed., pp. 202-205). Pearson/Addison Wesley.

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