Some government officials argue that the success achieved by firms in the textile industry, in Egypt and Jordan, in developing a comparative advantage because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed. What objections do economists make to this argument in favor of trade barriers?

Question

Quizplus · Accepted Answer

The Answer of Some government officials argue that the success achieved by firms in the textile industry, in Egypt and Jordan, in developing a comparative advantage because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed. What objections do economists make to this argument in favor of trade barriers?

Some Government Officials Argue That the Success Achieved by Firms