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.