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How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are industries like computers not good candidates for infant industry protection?

a) Technological complexity
b) Export potential
c) Strategic importance
d) Mature market presence

User Syed Saad
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1 Answer

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Final answer:

Anser is Option B and C. To identify good candidates for infant industry protection, governments look for industries with export potential, strategic significance, and potential for growth and innovation

Step-by-step explanation:

Governments can identify good candidates for infant industry protection by looking for industries with specific characteristics that predict a high likelihood of future success and competitiveness. Good candidates for protection often have the potential for export growth, contribute to strategic significance for a nation, and show promise for developing economies of scale or for innovation. However, infant industry protection might not be suitable for all sectors, especially those like the computer industry.

Industries like computers are not favored for infant industry protection mainly due to their technological complexity and rapid pace of innovation which requires access to the most advanced technology and processes globally. This sector also has a mature market presence, meaning that established firms dominate, making it difficult for new entrants to compete without severely disrupting other domestic industries that rely on the best available technology at competitive prices. Additionally, protectionist measures might impose high costs on a wide array of other industries that depend on computers, reducing the overall competitiveness of the economy.

User Beryllium
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