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Merits and Weaknesses of Import Restrictions

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

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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 ...

Solution Summary

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

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