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Merits and Weaknesses of Import Restrictions

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What is the infant industry argument for putting up barriers to imports? What are its merits and weaknesses?

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Solution Summary

The solution exemplifies the merits and weaknesses of putting up barriers to imports vis-a-vis infant industries.

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Import barriers as an economic policy may stunt or wean infant industries. Here are the pros and cons:

Merits

- Import barriers like tariff helped raised significant revenue

- Import barriers help wean infant industries

- Increasing import tariffs to as high as the World Trade Organization (WTO) would allow intends to protect domestic production, (ABS-CBN, 2009).

- The growth of tariff barriers helped countries like the EEC, Asian Economies, and the US experienced strong growth (Greenwald and ...

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