What is a infant industry:
An infant industry is a new or emerging industry in a country that is not yet competitive in the global market. Governments often protect these industries using tariffs, subsidies, or other policies to help them grow until they can compete with established foreign industries.
Why these industry's need to be protected:
High Initial Costs – New industries face high setup costs, making it hard to compete with well-established firms.
Economies of Scale – Larger, older industries produce at lower costs, while new industries need time to reach that level.
Technology & Skills Gap – New industries may lack advanced technology and skilled workers, needing time to develop.
Unfair Competition – Foreign companies might dominate the market with lower prices, crushing local startups before they grow.
National Economic Growth – Protecting infant industries can create jobs, boost innovation, and strengthen the economy.
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