00:01
In this question we have to explain the infant industry argument in favoring protection of domestic industries from foreign competition.
00:08
So is there a validity with such an argument? so this is the question.
00:13
So first of all we have to see what is infant industry.
00:17
So infant industry is an argument is a justification for protecting domestic industries from foreign competition.
00:26
It also suggests that nurturing and shielding emerging or new industries in a country can be beneficial in the long run.
00:35
So here we can see the key points regarding this argument.
00:40
So the first key point is protection for growth.
00:44
So in this infant industry need protection.
00:48
For example tariffs, subsidies to grow and compete globally.
00:54
Next one is economic development.
00:56
Here protecting these industries can be promoted economic development and diversification.
01:03
Next one is learning curve.
01:05
So by allowing them to mature this industry can achieve economies of scale and learn competition.
01:11
Next one is job creation...