Infant industry argument

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Infant industry argument

Argument that industries in the developing and emerging sectors of the economy need protection against international competition in order to establish themselves.

Infant Industry Argument

A policy position stating that new industries developing in a country need government protection. That is, the infant industry argument states that a government must subsidize these industries and/or protect them through tariffs. Proponents of this argument note that several East Asian tigers used this policy following World War II with a great deal of success. Critics maintain that these policies are capital intensive and not all states can afford them. It could also lead to retaliatory moves in countries to which a country seeks to export. See also: Import-substitution industrialization.
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The trickle down effects of this decision would shift to people and infant industries would be largely benefited.
According to Chang, "the practice of protecting infant industries had existed before, but it was Hamilton who first turned it into a theory and gave it a name (the term 'infant industries' was invented by him).
The Ministry announced that Government is working on modalities to offer incentives to companies for promoting SMEs to shore up growth of infant industries.
The SACU agreement allows the Government of Botswana, Lesotho, Namibia or Swaziland to impose temporal restrictions on goods being imported into their territories for purposes of protecting their budding or infant industries that are threatened by such imports.
Infant industries need protection and support but returns must materialize; local niches should be utilized.
The Rajya Sabha member said both the sides should take steps to protect infant industries.
The economic historian Douglas Irwin has challenged the argument that nineteenth-century protectionist policy aided the growth of infant industries in the United States.
Forcing them to open up their markets to provide more export opportunities to Western businesses could threaten the livelihoods of millions of farmers and snuff out infant industries.
Subsidies should be directed at infant industries that will eventually become economic when they reach a sensible scale, not at ageing, expensive and dangerous technologies like nuclear.
We have a large number of infant industries and a growing export trade.
for hybrid fleets), and tax benefits for commercial models that defray upfront capital costs are among the incentives needed to launch infant industries and drive market shifts.
However, the disruptions may have had a permanent effect in reallocating resources between domestic infant industries (such as cotton textiles) and trade-dependent industries (such as shipbuilding).

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