What is an infant industry?
Infant industry is a new industry that is carried out in the development process. Infant sectors are very vulnerable to competition and weakness on the market because they are not well introduced. Some economists argue that they should be protected, as they develop, according to the argument of infant industry or the theory of infant industry. Others believe that infant industries should be allowed to take care of themselves and make their own way in the world. These industries are created to meet the need or to provide a domestic product or service source. In countries with increasing economies, infant industries develop in response to perceived economic opportunities. Some governments actively support the development of new industries with grants, tax loans and other incentives, such as advice from business planners designed to make it easier for new businesses to start. If the infant industry begins to prosper, it can quickly contribute to the overall growth of the POS economyBoth jobs and business for suppliers and sellers. These industries can also promote self -sufficiency for the developing nation by providing the country an internal source of the necessary product or service. This can be attractive to countries trying to reduce relying on imported goods.
In countries with protectionist business policies, infant industries can be protected by quotas, tariffs and other limits for goods from foreign competitors. This gives the infant industry a chance to get out of the feet and develop. In the early stages, such industries cannot compete with well -established companies that have developed relations with suppliers, efficient manufacturing techniques and capital reserves that can be used to support during the rocky economy. Protection allows the infant industry to flourish and develop so that it can catch up with competitors.
other people say that protectionismIn fact, it damages the infant industry because they are not forced to adapt quickly and move with the market. These advocates suggest that industry should be able to come up with creative ways to face foreign competitors. This attitude can create a hard business climate for the new industry because it can be difficult. For example, a new car manufacturer cannot realistically hope to compete with a established foreign car producer that can make cars cheaply and more efficiently.