国际贸易理论和实务Ch.8 Argument against free trade.pptVIP

  §1 Traditional Arguments against Free Trade  1. Infant industry argument An argument in favor of protecting the domestic backdated industries through government backing, help, and intervention. The main motive is to create a level playing field. Home country industry “late start” If protection temporarily, firms realize sufficient economies of scale (internal or external) Eventually per-unit costs fall, home industry becomes an exporter. At this point protection can be removed. Consumers finance the expansion, but more than repaid when the industr