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
Distinction between Human Capital and Resource and Manpower Health and education are normally considered as human capital. Health includes both physical health and fitness. E

Q. Explain about Banking Cycle? An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become

"Describe the current Australian economic situation and support your claims with relevant economic indicators and variables.  The RBA has maintained the cash rate of 4.75% for the

Another school of thought developed what is called loanable funds theory of interest. Among the principle economists who contributed to the development of loanable funds theory men

price quantity 10 60 20 70 30 90 40 110 50 130 derived a supply function for the relation between price and quantity

a consumer consumes only two goods x and y is in eqillibrium price of x falls explain the reaction of consumer through utility analysis

if a commodity has limited demand , should economist say that we still have a scarcity ?

"Consider a market with n firms occupied in Bertrand competition. These firms have in common dissimilar marginal costs but any number of them may also have equivalent marginal cost

determinants of demand and determinants of supply