Refers to industries that are just starting up and not able to compete in the World Markets. An example is the South Korean car industry; when it first developed, this particular industry could not compete on a global level as well as a state level. Therefore the government started offering incentives to its citizens urging them to buy Korean cars, with time this industry emerged from infancy and became competitive in both state and world markets.
Also incentives to potential investors and car manufacturers. Sometimes, governments would also try to “protect” the infant industry through trade barriers.
A government’s actions to protect an infant industry are an example of protectionism.
Industries that are just starting up and are unable to compete in the World Market. An example is the South Korean car industry; when it first developed, it could not compete at a global level as affectively as it could at the state level. Therefore, the government began offering incentives to its citizens, potential investors and car manufactures, urging them to buy Korean cars. With time, this industry emerged from infancy and became competitive in both state and world markets. It is also common for governments to "protect" an infant industry through the establishment of trade barriers.
Refers to industries that are just starting up and not able to compete in the World Markets. An example is the South Korean car industry; when it first developed, this particular industry could not compete on a global level as well as a state level. Therefore the government started offering incentives to its citizens urging them to buy Korean cars, with time this industry emerged from infancy and became competitive in both state and world markets.
Also incentives to potential investors and car manufacturers. Sometimes, governments would also try to “protect” the infant industry through trade barriers.
A government’s actions to protect an infant industry are an example of protectionism.
Industries that are just starting up and are unable to compete in the World Market. An example is the South Korean car industry; when it first developed, it could not compete at a global level as affectively as it could at the state level. Therefore, the government began offering incentives to its citizens, potential investors and car manufactures, urging them to buy Korean cars. With time, this industry emerged from infancy and became competitive in both state and world markets. It is also common for governments to "protect" an infant industry through the establishment of trade barriers.