Dalton, Georgia, a Town with a Population Less Than 35,000

Essay

Dalton, Georgia, a town with a population less than 35,000, has developed into a leading producer of carpets, despite its small size.Some government officials argue that the success achieved by firms in Dalton in developing a comparative advantage in carpet making because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed.What objections do economists make to this argument in favor of trade barriers?