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What is the Infant Industry argument?
Several governments seek to protect involving industries by premature competition. Infant industries have potential comparative benefit but have not still reach MEPS that is lowest economies of scale (LAC).
Short-term protection through established foreign competition operating at lowest economies of scale permits the infant industry to develop its comparative benefit.
Conversely there is a loss of economic welfare and infant industries defended from competition have small incentive to decrease production costs.
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