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Protectionist Trade Theory And Policy

2010/11/6 9:24:00 31

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First, put forward the background of the theory of immature industrial protection; 1, in terms of economy: the level of development is far behind that of the industrial revolution.

By 1848, the handicraft industry and dispersed small handicraft industry were still the main industry, and the proportion of factory production was very small.

2.

foreign trade

Yi: the main export raw materials and food.

Imported

Semi manufactured goods and finished products.

Two, protect the main points of Infant-Industry Argument. Developing countries have potential comparative advantages in manufacturing, but new manufacturing industries in developing countries can not compete with developed manufacturing industries at first. In order to gain a foothold for the newly growing manufacturing industry, the government should give temporary support until they are strong enough to participate in International competition.

theory

Based on the interests of the German industrial bourgeoisie, the foundation productivity theory concerns the improvement of productivity, especially the improvement of Germany's industrial productivity.

Wealth is important, but developing productivity is more important.

During the period of turning into animal husbandry and agriculture, the free trade of advanced countries can be beneficial, because free trade can find a way out for their agricultural products and other raw materials, and can exchange better clothing, machinery and precious metals to promote the development of their own agriculture and cultivate the industrial base. After entering the agricultural and industrial business period, the domestic industrial products already have the international competitiveness, free trade can compete unrestricted in foreign markets, and constantly strive to maintain the advantageous position; only in the agricultural industry need protection, because domestic agriculture has made great achievements and the industry has developed, but because of the competitive power of other advanced industrial countries, there are reasons for restricting the establishment and protection of their industries. 2, the theoretical basis -- the theory of economic development stage starts from the beginning.

3, main argument 1: protection target: only the immature industry, which is related to the national industrial development, and the industry that has a promising future but has just developed and has strong foreign competition, needs protection.

Protection time: these industries have been protected for quite some time (about 30 years) and no longer need protection after they are ripe.

Protection measures: tariff is an important means to establish and protect domestic industries.

But this loss is temporary, sacrificing only immediate interests, but gains in productivity.