Suppose a South Korean company wishes to produce motorcycles, but faces difficult competition from imported motorcycles from Japan, which has a very mature and efficient motorcycle industry. What type of trade protectionism might the South Korean company seek?

Question

Quizplus · Accepted Answer

Tariffs based on infant industry protection are designed to shield emerging domestic industries from foreign competition until they become established and competitive on their own. In this scenario, the South Korean company is facing tough competition from the mature Japanese motorcycle industry, so seeking protection under the guise of supporting an infant industry would be a strategic move to gain a foothold in the market.

Suppose a South Korean Company Wishes to Produce Motorcycles, but Faces