Protection of infant firms, Microeconomics

Protection of infant firms:

Infant industries are those firms, which are young. The absence of economies of scale to them makes their unit cost of production higher than older and efficient firms in other countries. Protection may be justified during the early growth of an infant firm, As the infant firms grow, skills and productivity, as well as economies of scale will grow, so increasing the firm’s relative competitive advantage.
 
To protect domestic labour against cheap foreign labour.The theory comparative cost advantage assumes that factors of production are both fully employed and mobile within countries. If large-scale unemployment exists within a country, protection may be used to increase employment.

Posted Date: 1/3/2013 12:42:10 AM | Location : United States







Related Discussions:- Protection of infant firms, Assignment Help, Ask Question on Protection of infant firms, Get Answer, Expert's Help, Protection of infant firms Discussions

Write discussion on Protection of infant firms
Your posts are moderated
Related Questions

Problem 1: a. Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy. b. According to you, which type of economic system is most desira

Steel and aluminum production Steel Canada 500, France 1200 Aluminum Canada 1500, France 800 The maximum amount of steel or aluminum that Canada and France can produce if they full

#question.what is the periodc clasification?.


What is the theory of second best? Prove the theorem with the help of a diagram

Gains from International Trade: It leads to increased total world production of goods and services. International trade based on comparative cost advantage allows countries to

#question.what is meant by ppc?illustrate the central problems of aneconomy with this curve.

diagrammatically condition of consumer equilibirium

what is marginal costs?