Answer to Question #119020 in Macroeconomics for Aynul

Question

Explore the following arguments from both supporting and opposing perspectives ( I don’t expect you to copy from the slides), in your own words, in favor of restricting international trading: a. Infant Industry Argument b. Anti-Dumping Argument

Answer 1

The Infant Industry concede the developed industry. And without the politics of mercantilism, it will be destroyed by the developed industry. At the same time undeveloped economy can supply low-cost goods which will destroy the developed industry. But the international trading create competition between market players and new technolody come in undeveloped economy.