Explain the Rationale for Infant Industry Protectionism First Proposed by Alexander

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The Answer is The rationale for infant industry protectionism, as first proposed by Alexander Hamilton in the 1790s and later advocated by Fredrick List in the mid-nineteenth century, is based on the idea that developing industries in a country need protection from foreign competition in their early stages in order to grow and become competitive in the global market.

Hamilton argued that new industries in the United States needed protection from more established and advanced European industries in order to develop and become self-sufficient. He believed that tariffs and other forms of protectionism would allow American industries to grow and eventually compete on a level playing field with their foreign counterparts.

Similarly, List emphasized the importance of protecting infant industries in developing countries in order to foster economic growth and industrialization. He argued that without protection, domestic industries would be unable to compete with more advanced foreign industries and would ultimately fail, leading to economic dependence on other countries.

Both Hamilton and List believed that temporary protectionism was necessary to allow infant industries to mature and become competitive. Once these industries had reached a certain level of development and competitiveness, the protectionist measures could be gradually phased out.

Overall, the rationale for infant industry protectionism is based on the belief that nurturing and protecting new industries in their early stages is essential for economic development and industrialization, and that temporary protection from foreign competition is necessary to allow these industries to grow and become competitive in the global market.

Explain the Rationale for Infant Industry Protectionism First Proposed by Alexander

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Explain the Rationale for Infant Industry Protectionism First Proposed by Alexander

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Correct Answer:Answered by ExamLex AIShow Answer

Correct Answer:
Answered by ExamLex AI