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Sagot :
The notion that as an industry grows and matures it gains the knowledge it needs to become more innovative, efficient, and competitive is known as the "infant industry argument".
What is infant industry argument?
According to the infant-industry theory, emerging industries in underdeveloped nations require protection from market pressures until they mature and achieve economies of scale that can compete with those of their rivals.
The benefits of infant industry argument are-
- It helps the economy become less dependent on external markets and increase production independence.
- New industries create new employment prospects when they are nurtured and allowed to expand.
The infant industries should be protected because-
- A case for trade protectionism's economic justification is the baby industry theory.
- The main thrust of the argument is that emerging industries frequently lack the economies of scale that their more established international competitors may possess and hence require protection until they can achieve comparable economies of scale.
To know more about the characteristics of developing and under developed nations, here
https://brainly.com/question/16875840
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