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Infant industries protection mechanism

Infant industries protection mechanism y1e3

a) Define an infant industry. (2) Infant industries: New industries with relatively low output and high cost. These industries are called sunrise industries, which have the potential to grow. 2 b) Explain two benefits of free trade for producers. (4) Free trade, and unrestricted trade allow countries to concentrate what they are best at producing and hence allow for an efficient allocation of resources. Selling freely to a global market would raise competitive forces and give them access to more sources of raw materials and components. It would improve the quality of products they buy and also gain from a greater choice of products. It is also encouraging firms to locate some of their production in the most efficient locations. By free trade, producers transport their products at lower cost. 4 c) Analyse how the imposition of a tariff could prevent dumping. (6) First of all, dumping is unfair competition. This occurs when foreign firms sell products at a price below cost of production. A more damaging motive behind dumping is to drive domestic firms out of the market, gain a large market share and then raise prices. In the long run, it may result in a less efficient allocation of resources and the foreign firms gaining more market power, reducing choice and raising price. This is selling excess supplies in other countries, in order to keep the price high in the domestic market. A tariff can be imposed on imported products. It will discourage the purchase of imports. Placing a tariff on an imported product raises its price. It is likely to be set at a level which will mean that the imported products will sell at a higher price than domestically produced goods. So placing tariffs, would increase the price of products which are above domestic products. So it will prevent industries from dumping by increasing its price to sell in the market. 6 d) Discuss whether or not the presence of a foreign multinational company will benefit a country. (8) Multinational company is a business organisation that produces in more than one country. They can increase employment, output and tax revenue, bring in new technology and management ideas and help in development of infrastructure. By improving the output of a country, standards of living may be increased which will benefit a country. But they are more prone to pollute and willing to close down plants in foreign countries. There is a risk that they may drive domestic firms out of business. The domestic such new industries, which have potential to grow, may be eliminated by foreign competition before they have really started, leading to discourage domestic firms. So the presence of foreign multinational company will benefit a country due to the pros outweighing the cons. 8

a) Define an infant You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industry
. (2)

Infant You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industries
: New You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industries
 with relatively
 low output and high cost. These You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industries
are called
 sunrise You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industries
, which have the potential to grow. 2

b) This phrase/word (depending on the context) can be potentially replaced with :interpret
Explain
 two You use this word too often, consider replacing it withprosperityusehelpprofitassistanceperk
benefits
 of free You use this word too often, consider replacing it withcommercetransactiondealbusinessexchangeindustry
trade
 for producers. (4)

Free You use this word too often, consider replacing it withcommercetransactiondealbusinessexchangeindustry
trade
, and unrestricted You use this word too often, consider replacing it withcommercetransactiondealbusinessexchangeindustry
trade
This phrase/word (depending on the context) can be potentially replaced with :authorize
allow
You use this word too often, consider replacing it withlandpeopleregioncommunitysocietystate
countries
 to concentrate what they are best at producing and hence
This phrase/word (depending on the context) can be potentially replaced with :authorize
allow
 for an efficient allocation of resources. Selling freely
 to a global You use this word too often, consider replacing it withadvertiseretaildisplay
market
 would raise competitive forces and give them access to more sources of raw materials and components. It would This phrase/word (depending on the context) can be potentially replaced with :ameliorate
improve
 the quality of You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
 they This phrase/word (depending on the context) can be potentially replaced with :purchase
buy
 and also
 gain from a greater choice of products.

It is also
 encouraging You use this word too often, consider replacing it withtoughsturdysolidhardunyieldingsubstantial
firms
 to locate This phrase/word is too simple and can be replaced with:a number of
some
 of their production in the most efficient locations. By free You use this word too often, consider replacing it withcommercetransactiondealbusinessexchangeindustry
trade
, producers transport their You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
 at lower cost. 4

c) Possible spelling mistake. 'Analyse' is British English.Analyze
Analyse
 how the imposition of a You use this word too often, consider replacing it withdutylevyexcisepricetaxrate
tariff
 could This phrase/word (depending on the context) can be potentially replaced with :preclude
prevent
You use this word too often, consider replacing it withremoval
dumping
. (6)

This phrase is redundant. Consider using "first".First
First of all
, You use this word too often, consider replacing it withremoval
dumping
 is unfair competition. This occurs when You use this word too often, consider replacing it withdifferentunfamiliaralienexternaloverseasoffshore
foreign
You use this word too often, consider replacing it withtoughsturdysolidhardunyieldingsubstantial
firms
 sell You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
 at a You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 below cost of production. A more damaging motive behind You use this word too often, consider replacing it withremoval
dumping
 is to drive You use this word too often, consider replacing it withprivate
domestic
You use this word too often, consider replacing it withtoughsturdysolidhardunyieldingsubstantial
firms
 out of the You use this word too often, consider replacing it withadvertiseretaildisplay
market
, gain a large You use this word too often, consider replacing it withadvertiseretaildisplay
market
 share and then raise You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
prices
. In the long run, it may result in a less efficient allocation of resources and the You use this word too often, consider replacing it withdifferentunfamiliaralienexternaloverseasoffshore
foreign
You use this word too often, consider replacing it withtoughsturdysolidhardunyieldingsubstantial
firms
 gaining more You use this word too often, consider replacing it withadvertiseretaildisplay
market
 power, reducing choice and raising You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
. This is selling excess supplies in other You use this word too often, consider replacing it withlandpeopleregioncommunitysocietystate
countries
, in order to This phrase/word (depending on the context) can be potentially replaced with :retain
keep
 the You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 high in the You use this word too often, consider replacing it withprivate
domestic
You use this word too often, consider replacing it withadvertiseretaildisplay
market
. A You use this word too often, consider replacing it withdutylevyexcisepricetaxrate
tariff
 can be imposed
 on imported You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
. It will discourage the This phrase/word (depending on the context) can be potentially replaced with :acquire
purchase
 of imports. Placing a You use this word too often, consider replacing it withdutylevyexcisepricetaxrate
tariff
 on an imported You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
product
 raises its You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
. It is likely to be set
 at a level which will mean that the imported You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
 will sell at a higher You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 than domestically
 produced This phrase/word (depending on the context) can be potentially replaced with :productscommoditiesmerchandises
goods
. This phrase/word is too simple and can be replaced with:consequently
So
 placing You use this word too often, consider replacing it withdutylevyexcisepricetaxrate
tariffs
, would increase the You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 of You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
 which are above You use this word too often, consider replacing it withprivate
domestic
You use this word too often, consider replacing it withcommodityprofitbrandworkamountcrop
products
. This phrase/word is too simple and can be replaced with:consequently
So
 it will This phrase/word (depending on the context) can be potentially replaced with :preclude
prevent
You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industries
 from You use this word too often, consider replacing it withremoval
dumping
 by increasing its You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 to sell in the You use this word too often, consider replacing it withadvertiseretaildisplay
market
. 6

d) Discuss Consider shortening this phrase to just "whether". It is correct though if you mean 'regardless of whether'.whether
whether or not
 the presence of a You use this word too often, consider replacing it withdifferentunfamiliaralienexternaloverseasoffshore
foreign
 multinational This phrase/word (depending on the context) can be potentially replaced with :enterprisecorporation
company
 will You use this word too often, consider replacing it withprosperityusehelpprofitassistanceperk
benefit
 a You use this word too often, consider replacing it withrusticbucolichomeyagrarianprovincial
country
. (8)

Multinational This phrase/word (depending on the context) can be potentially replaced with :enterprisecorporation
company
 is a business Possible spelling mistake. 'organisation' is British English.organization
organisation
 that produces in more than one You use this word too often, consider replacing it withrusticbucolichomeyagrarianprovincial
country
. They can increase employment, output and tax revenue, bring in new technology and management This phrase/word (depending on the context) can be potentially replaced with :thoughtsconceptsnotions
ideas
 and This phrase/word (depending on the context) can be potentially replaced with :assistassistance
help
 in development of infrastructure. By improving the output of a You use this word too often, consider replacing it withrusticbucolichomeyagrarianprovincial
country
, standards of living may be increased
 which will You use this word too often, consider replacing it withprosperityusehelpprofitassistanceperk
benefit
 a You use this word too often, consider replacing it withrusticbucolichomeyagrarianprovincial
country
. This phrase/word is too simple and can be replaced with:on the contrary
But
 they are more prone to pollute and willing to close down plants in You use this word too often, consider replacing it withdifferentunfamiliaralienexternaloverseasoffshore
foreign
You use this word too often, consider replacing it withlandpeopleregioncommunitysocietystate
countries
. There is a This phrase/word (depending on the context) can be potentially replaced with :hazarddanger
risk
 that they may drive You use this word too often, consider replacing it withprivate
domestic
You use this word too often, consider replacing it withtoughsturdysolidhardunyieldingsubstantial
firms
 out of business. The You use this word too often, consider replacing it withprivate
domestic
 such new You use this word too often, consider replacing it withcommercemanagementbusinesscorporationtradeproduction
industries
, which have potential to grow, may be eliminated
 by You use this word too often, consider replacing it withdifferentunfamiliaralienexternaloverseasoffshore
foreign
 competition This phrase/word is too simple and can be replaced with:previouslyprior to
before
 they have really
This phrase/word (depending on the context) can be potentially replaced with :initiated
started
, leading to discourage You use this word too often, consider replacing it withprivate
domestic
You use this word too often, consider replacing it withtoughsturdysolidhardunyieldingsubstantial
firms
. This phrase/word is too simple and can be replaced with:consequently
So
 the presence of You use this word too often, consider replacing it withdifferentunfamiliaralienexternaloverseasoffshore
foreign
 multinational This phrase/word (depending on the context) can be potentially replaced with :enterprisecorporation
company
 will You use this word too often, consider replacing it withprosperityusehelpprofitassistanceperk
benefit
 a You use this word too often, consider replacing it withrusticbucolichomeyagrarianprovincial
country
 due to the pros outweighing the cons. 8