The term ‘pu.punctilious’ is used to denote a policy of encouraging the home industries hy the use of bounties or hy the imposition of high cu-toms duties on foreign products. The objects is to’build up grcat national industries even by sacrificing utilities on the pun of existing consumers. 11gm cuts for Protection The main arguments that arc usually advanced in Favour of protection arc..discussed below . This argumentwas German economist.in 11<40. In those days. Germany was making all-out effort-, II. industrialist its economy. On the other hand.the U.K. had already built. hy that time. a sound sound industria! base. Germany was then faring lot of difficulties ill competing with the more established British industry. List was of the tin” view that the development of ind II sn ies i~ a prerequisite of economic progress. Free trade was good for B tain whose economic position was already established. For young emerging German industry, however. protection (If a
tariff wall was essential. In t e words of J Mill. “The superiority (If one country over another in a branch of production often arises only from having begun it sooner. There may be no inherent advantage on one.