Why might a government protect an infant industry?
A
Infant industry protection allows new firms to avoid investing in efficient production methods while imports remain expensive.
B
Infant industry protection forces new firms to specialise in exports before they develop domestic demand.
C
Infant industry protection shields established firms until they can charge higher prices without losing domestic market share.
D
Infant industry protection shields new firms until they gain economies of scale and reduce unit costs enough to compete.
6.2.3 arguments for and against protectionism Flashcards
25 flashcards on CIE Intl A Level Economics 6.2.3 arguments for and against protectionism: the key terms and definitions you need to recall.