Dalton, Georgia, a Town with a Population Less Than 35,000

question 50

Essay

Dalton, Georgia, a town with a population less than 35,000, has developed into a leading producer of carpets, despite its small size.Some government officials argue that the success achieved by firms in Dalton in developing a comparative advantage in carpet making because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed.What objections do economists make to this argument in favor of trade barriers?

---

Definitions:

Experimental Data

Information gathered through systematic experimentation or observation, aimed at testing hypotheses or evaluating outcomes.

Survey Data

Information collected from respondents through questionnaires aimed at gathering insights on various topics.

Self-Selected Sample

A sample consisting of volunteers or individuals who choose themselves to participate in a research, possibly leading to bias.

Randomly Selected

Chosen without bias or pattern, ensuring each member of the population has an equal chance of being included in the sample.