Prince Edward Island is a province with a population under 150 000.Paderno based in PEI has developed into a leading producer of cookware, despite the province's small size.Some government officials argue that the success achieved by Paderno in developing a comparative advantage in cookware making is because of external economies and 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 Prince Edward Island is a province with a population under 150 000.Paderno based in PEI has developed into a leading producer of cookware, despite the province's small size.Some government officials argue that the success achieved by Paderno in developing a comparative advantage in cookware making is because of external economies and 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?

Prince Edward Island Is a Province with a Population Under