Question

If the emerging automobile industry in Botswana requests tariff protection because their costs will be temporarily high until the industry is better established, the automobile industry is using the

Answer 1

infant industry argument

Step-by-step explanation:

The infant industry argument is basically a political argument for trade protectionism. I have several friends from Argentina that complain that the price of cars there are extremely high because the government has used this same argument for more than 100 years now. If after more than 100 year of manufacturing cars, a country's industry is still infant, then the world has no sense.

The main argument of the infant industry theory is that new industries haven't achieved economies of scale yet, but the question is: Will they ever achieve economies of scale? Probably not. Even if only cars from Botswana are sold there, how many cars can its citizens buy? It will never be able to export any car, so the government is actually punishing its citizens by forcing them to buy terrible cars that are probably priced like a BMW.

Answer 2

The principle of "Protection of Infant Company from the unhealthy rivalry from well establish foreign Multinationals."

Step-by-step explanation:

Most countries have this indigenous laws to protect Infant companies such as the automobile industry in Bostwana by high tariffs from their home country against the unhealthy competions from well established foreign automobile conglomerates from America, the Western nations and Asian Tigers. The well established conglomerates can use all types of Trade tools to ensure that the infant industry of the developing nation nerver see the light of the day. That their prospectes where damped.