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Industry Argument Diversification
Protection is advocated by list and other economists to diversify the industries of a country when there is unbalanced economy as a result of excessive specialization. Excessive specialization leads to overdependence of a country on other countries. This is dangerous, politically as well as economically. Politically, in times of war imports from foreign countries become difficult and people have to suffer hardships. Economically, there is a danger of serious economic dislocation in case adverse circumstances affect these few industries on which the country is dependent. Thus, in order to bring about a harmonious and balanced growth of all industries and self sufficiency, it is necessary to bring about a diversification of industries through protection.
Criticisms
This argument seems to have merits of its won in these days of tension when it advocates retinols self sufficiency. However, it has been criticized on the following counts:
1. All countries even highly industrialized countries like U.S.A. and the former U.S.S.R., do not posses all types of natural resources and in adequate quantities to be self sufficient. Thus, there is practical difficulty for any country to be completely self-sufficient.
2. It cuts at the very root of the principle of comparative cost advantage and relative specialization as a basis of international trade.
3. Complete isolation is not possible in the modern world.
4. Hence the diversification argument in favour of protection is weak. Further, it should be noted that protection in any case should not mean complete abandonment of international economic relations.
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Criticisms
This argument seems to have merits of its won in these days of tension when it advocates retinols self sufficiency. However, it has been criticized on the following counts:
1. All countries even highly industrialized countries like U.S.A. and the former U.S.S.R., do not posses all types of natural resources and in adequate quantities to be self sufficient. Thus, there is practical difficulty for any country to be completely self-sufficient.
2. It cuts at the very root of the principle of comparative cost advantage and relative specialization as a basis of international trade.
3. Complete isolation is not possible in the modern world.
4. Hence the diversification argument in favour of protection is weak. Further, it should be noted that protection in any case should not mean complete abandonment of international economic relations.
Services: - Industry Argument Diversification Homework | Industry Argument Diversification Homework Help | Industry Argument Diversification Homework Help Services | Live Industry Argument Diversification Homework Help | Industry Argument Diversification Homework Tutors | Online Industry Argument Diversification Homework Help | Industry Argument Diversification Tutors | Online Industry Argument Diversification Tutors | Industry Argument Diversification Homework Services | Industry Argument Diversification
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Topics
Comparative Costs-Goods
Comparative Costs-Countries
Economic Integration
Customs Union Equilibrium
Customs Union Dynamic Effect
Customs Union Pure Theory
Euro-Dollar Market
Euro-Dollar-Benefits, Effects
Exchange Control Effect
Exchange Control
Exchange Control Methods
Exchange Control Procedure
Price Equalization
Intra Industry Trade Factors
Ohlin- Two Country Model
Intra-Industry Trade
Foreign Direct Investment
Industry Argument Diversification
Free Trade
Infant Industry Argument
Non-Economic Arguments
Employment Promotion Argument
Protection As Trade Policy
Protection-Developing Countries
Non-Tariff Barriers
Origin Of Gatt
Tariff Negotiations
Effects Of Quotas
Quotas Vs Tariffs
Quotas- Nature, Purpose
Import Quotas Types
Heterogeneous Markets
Internal, International Trade
International Trade Theory
International Transactions
Trade- Pure, Monetary Theory
Capital Movement Factors
Capital Movements Role
Capital Movements
International Development Ass.
International Finance Corp.
The World Bank
International Liquidity Adequacy
IMF, International Liquidity
International Liquidity
Paper Gold
Revaluation Of Gold
SDRS Salient Features
SDRS Operations
Symmetry- Monetary System
Triffins Radical Transformation
IMF Achievements
IMF Objectives, Functions
IMF Structure
Quotas
IMF Nature
Modern International Trade
International Trade Development
Product Cycle Hypothesis
Constant Factor Supply
Product Price Increase Effect
Vent-for-Surplus Approach
Foreign Trade Gains
Trade Gains Nature
Factors Determining Gain Size
Sources Of Gain
Factor Proportion Theory
Factor Proportions Assumptions
Trade Modern Theory
Factors Proportions Shortcomings
Absolute Cost Advantage
Gold Standard Mechanism
Underdevelop Comparative Costs
Comparative Costs Doctrine
Comparative Advantage Doctrine
Gold Standard Advantages
International Gold Standard
Gold Standard Game Rules
International Cartels
Price Discrimination, Dumping




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