Would you say in essence developing and developed countries have the same or different reasons to implement protectionist economical measures?
What do you think are the globalized effects these measures can have or have depending on wether the country is developed or developing?
Infant Industry argument is the common one for developing countries. If it is truly for infant industry expansion, it may produce positve effects
The so-called Globalization presents implementation failures. Thus, of course, developing countries need to protect themselves, while developed countries can make agreements that they find interesting and come out at any time they wish.
This is a very good question! Thank you for asking.
I think there can be different reasons for a country to impose trade protection policies such as tariffs. A developing country usually imposes tariffs to raise government revenue. In a poor nation, taxes do not raise much revenue for the government because incomes are low and many people use cash to avoid taxes.
In Advanced counties, a tariff is usually imposed to protect domestic jobs. Tariffs are generally targeted in very specific industries. Also, labor unions have great influence and they can convince the government leaders to protect their industry.
Infant Industry argument is the common one for developing countries. If it is truly for infant industry expansion, it may produce positve effects
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