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Domestic Growth and the World Economy

res more cheaply. The industrial sector struggles against cheap, superior imports, but its frustrations are largely ignored.

Now, however, let the industrial sector become more important. Perhaps it has gradually expanded in spite of import competition, reaching some critical level of influence. Or, perhaps, non-economic factors have come into play -- for example, modern weapons have become more important for defense than sheer manpower, placing a strategic premium on the ability to manufacture them. However, the industrial sector is still underdeveloped, competing with difficulty against imports and unable to produce the most modern weapons.

In this situation, the balance may shift toward protectionism. The farmers still don't want it -- retaliatory tariffs abroad will cut their exports. The increasingly influential industrial sector supports protectionism, as a barrier to import competition. Those concerned about national defense, or general "modernity," will also support protectionism. Moreover, while consumers would have

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Domestic Growth and the World Economy. (1969, December 31). In LotsofEssays.com. Retrieved 05:29, May 19, 2024, from https://www.lotsofessays.com/viewpaper/1688992.html