1 Answer | Add Yours
In today's global market, the economies of small, less-developed countries are being exposed more than ever before to competition from larger, more advanced countries. Therefore, the most important justification for protective tariffs is the infant industries argument. According to this argument, tariffs are needed to protect growing domestic industries from competition. Such industries cannot hope to compete with established firms from other countries. At the same time, their development is important because it will help allow the economy of their own country to mature and diversify. That means that protective tariffs are necessary to protect the domestic economy from competition and to let it develop and mature into a stronger economy that could actually compete internationally.
We’ve answered 319,827 questions. We can answer yours, too.Ask a question