Infant industry
Definition. An infant industry is a newly established domestic industry that is not yet large enough to compete with established foreign producers because it has not had time to develop economies of scale or expertise. The infant industry argument is used to justify temporary protection until the industry can stand on its own.
Supporters argue that tariffs or quotas should shield such an industry while it matures, after which protection should be removed so the industry faces full competition.
This term belongs to Protectionism in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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