SS2 Second Term Economics Lesson Note – Industrialization II

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WEEK 6

TOPIC: INDUSTRIALIZATION (contd)

CONTENT:

• Infant industries
• Indigenization policy and nationalization

INFANT INDUSTRIES

Infant industries are newly established industries that are at the developing stage and need protection so that their products can effectively compete with products of long-established international businesses.

Arguments for Infant Industries

1. Infant industries need to be protected so that the economy can become self-reliant.
2. Protection of infant industries encourages domestic production.
3. It encourages consumption of locally produced goods.
4. It conserves scarce foreign exchange which can be used for industrialization.
5. Infant industries create employment for the citizens.
6. It develops the local market by increasing the production to meet up with ever-increasing demand.
7. Infant industries spirit develops indigenous technology and expertise.
8. It attracts more foreign investments.
9. It can also be used to prevent dumping.
10. It increases the level of domestic income, this is because, and the country is no more depending on the imported goods again.
11. It reduces importation of goods, thereby improving the balance of payment position.
12. Protection of infant industries encourages industrialization leading to diversification of the economy
13. If infant industries are protected, with time they will be a source of revenue to government through tax payments.

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