Infant Industry Argument
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Identify which countries have benefited the most from international trade over the last few decades. What policies do these countries have in common? Do their experiences lend support to the infant industry argument or argue against it? To support your answer, you will want to use academic sources to help research various countries. Use this week's lecture and assigned reading to inform your post.
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This solution explains.that actions of countries who have gained from international trade do not support infant industry argument The sources used are also included in the solution.
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The countries that have benefitted the most from international trade over the last few decades are Germany, China, Netherlands, and South Korea. The policies that these countries have in common is encouraging free trade but at the same time protecting their important industries. Each of these countries has also used trade policies to protect its industries (a). Germany protects its steel industry by giving subsidies through its regional governments. Historically; Netherlands has been the shipping center of Europe and has championed free trade, however, recently when there was credit crisis and unemployment rate increased in 2009, the large banking sector was given subsides through bailout packages (b). China has an open trade policy, however, it has been accused of subsidizing car factories so that they are located in China. In addition, ...
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