The term ‘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 adva ccd in Cavour of protection arc..discussed below: Ii) This argument was pUT Forward hy Friedrich List German economist. in 11<40. In those days. Germany was making all-out industrialist its economy. On the other hand.the U.K. had already built. hy that time. a sound industrial 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 Britain whose economic position was already w(‘w11 established. For young emerging German industry, however. protection (If a tariff wall was essential. In the words of Mill. “The superiority (If one country over another in a branch of production often arises only from having begun it so There may be no inherent advantage on one . part m disadvantage on the other, hut only a superiority of acquired skill ami experience Thus, J. S. Mill. one of the advocates or lrcc accepted only one argument ill favour of protection, the infant i In Mill s s Iran thus; “A pro- for a reason able time ,might sometimes he the least inconvenient mode in which a nation can tax itself for the support of such all cxp crime cnt(introducing new industries s ). But it is cultist J.S. Mill (1006-Hl21) Milt was an mJ voca!p.u uf lip’ that protection should be confined to cases in which the ground of assurance that the industry will after a time bc able to with 1 Alfred Marshall the eminent English economist. acceded the force of the infant the English economists hy and lal~!l’ adl lIc aleli free trade, for protection to product’ all infant indus Y must Iir~t grow IIp. eventually be able to compete at world pi ices. Not only has it all grow up. for a protection policy to be profitable. according to. it wi II have to he to pay back the due III protection during the infant industry period. Only then is there a dear-cut case for infant industry This argument specially applies hi countries.
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