Infant Industry Argument Law and Legal Definition
Infant industry argument refers to an economic rationale in favor of protecting the domestic industries through government backing, help, and intervention. The purpose is to create a level field between a backdated industry and a highly advanced industry producing similar commodities. Infant Industry Argument is applied on economies for the sake of correcting the distortions of short lived nature. According to this argument, the government protection to the industry holds good for a certain period of time and after that the market force is allowed to be in existence.
