The infant industry argument is an economic rationale for trade protectionism.[1] The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale. The logic underpinning the argument is that trade protectionism is costly in the short run but leads to long-term benefits.[1]
- ^ a b Oatley, Thomas (2019). International Political Economy: Sixth Edition. Routledge. pp. 139–144. ISBN 978-1351034647.