Question

please type the answer What are the flaws of the infant industry argument?

please type the answer

What are the flaws of the infant industry argument?

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Answer #1

The some of the flaws in the infant industry agreement are:

  • It can make people concentrate on protection so much that they just sustain without trying to learn to improve.
  • The argument can make the investments are limited to the firm’s profit.
  • It can prove that the imperfect capital markets may cause the private sector to fail.
  • It requires a very large funding
  • Infant industry argument is over-used
  • It will not offer an incentive in order to lower their costs.
  • The protected industry will not be ready to willingly give it up.
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