Britain was the first country to successfully use a large-scale infant industry promotion strategy

Britain was the first country to successfully use a large-scale infant industry promotion strategy.

• Britain was the first country to successfully use a large-scale infant industry promotion strategy.
• Britain did not want to industrialize the American colonies, and duly implemented policies to protect it.
• France’s trade regime was more liberal than that of Great Britain throughout most of the nineteenth century.
• Japan was forced open by the Americans in 1853, Japan’s feudal political order collapsed and a modernizing regime was established after the Meiji Restoration of 1868.
• The role of the state since then has been crucial in Japan’s development.
• The historical picture is clear.
• When they were trying to catch up with the frontier economies, the NDCs used interventionist trade and industrial policies in order to promote their infant industries.

Despite the gains from trade we have explained and illustrated using both PPCs and supply and demand diagrams, almost every country still chooses to engage in protectionism.

Link: https://www.theguardian.com/commentisfree/2019/aug/08/globalisation-not-survive-trump-markets-new-world-order?CMP=Share_AndroidApp_Copy_to_clipboard&fbclid=IwAR1nRvilZboEoDZpKMfIF0UzDU8y6LSVhrWLrvE5FiPrqReR21hipc-cFRY

• Tariffs:
• Quotas:
• Protective subsidies:

All forms of protectionism lead to a misallocation of society’s resources and ultimately reduce total welfare. However, there are several arguments for protectionism that must be evaluated

The Gains from Trade in a Supply and Demand Diagram

The gains from free trade can be illustrated in a diagram showing the supply and demand of a particular good that is being traded between to nations.