What Is the Infant Industry Argument? How Did Japan Use

question 101

Essay

What is the infant industry argument? How did Japan use the infant industry argument to rebuild its economic strength following World War II? What tools did it use?

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Definitions:

Investing Value

A measure of the worth of an investment, typically considering its return potential and risk.

Historical Value

An accounting practice of recording assets on the balance sheet at their original cost, without adjustments for inflation or market changes.

Asset

Resources owned by a company or individual that have economic value and can be converted into cash.

Parent-subsidiary Relationship

A corporate structure where one company (the parent) controls another company (the subsidiary) typically through ownership of a majority of its shares.