This is dangerous politically, as well as economically. The direct spend differences are clear: Economically, there is danger of serious economic dislocation in case adverse circumstances affect these few industries on which the country is dependent.
But under planned economy, we find economic stability. Under economic planning, allocation of economic resources is done in such a manner that maximum speed in the process of economics development is achieved. Therefore, the existence of unemployment in an industry usually is considered a very good reason for the imposition of a tariff.
During war periods, we require lot of resources to meet war needs.
We have found as increase in unemployment in such economies. Economic arguments in favor of protection policy are: Keynes criticized the policy of laissez faire due to which this policy came to an end.
In fact, the infant industry argument has wider scope of applicability in underdeveloped countries. The counter argument is, under a reimbursement program, the company gives up control over the person behind the wheel, and the company is always liable for the actions of its employees while on the job.
The result may be political corruption. Such an industry, in the initial stages of its growth, needs full protection from the state without which it cannot survive.
This is a big one. Thus, it is rare for protection to be given up once it is offered. Protection is advocated by List and other economists to diversify the industries of a country.
Basic economic problems like what to produce, how much to produce are solved in an effective manner through the mechanism of economic planning.
For more details, interesting or otherwise, check out the about page or feel free to get in touch. As the protected industries expand, employment therein increases and income of the economy increases.
Under planning, time and resources are fruitfully used, which raise the living standards of the people.
And even if there is retaliation by the other countries, at least some time elapses which will allow for temporary expansion in employment and income in the country.
Thus, a high tariff may be demanded in order to protect home producers against dumping of foreign goods in the home market at a much lower price and than what the foreign monopolist charges in his own country.
To achieve this objective rich class is burdened with progressive taxation and poor-class is provided with free social services. While making use of these scarce resources it is ascertained that there is least possible wastage.
It helps in achieving regional development. On the contrary, the resources of the country are used in a planned manner under economic planning.Questions for Debate. Inflation targeting is an economic policy in which a central bank publicly determines a target inflation rate and then attempts to steer actual inflation towards the target.
Argument in Favor of Inflation Targeting. The lease transfers ownership of the asset to the lessee by the end of the lease. The lease term is more than 75% of the asset's economic life. The PV of the lease payments is more than 90% of the asset's market value at lease inception.
So the argument was on whether or not it was a good idea to lease a car. He leases his Audi and I bought our Subaru. He prefers leasing his car for the fun of having a new car, no headaches with purchasing, and any maintenance and repair they pay for at the dealership.
Analyze various arguments for and against economic convergence Evaluate the speed of economic convergence between high-income countries and the rest of the world Some low-income and middle-income economies around the world have shown a pattern of convergence, in which their economies grow faster than those of high-income countries.
Economic planning proved to be a grand success in many countries. This made the concept very popular in all the countries of the world even capitalistic free market economies like UK and USA have tended towards planning. Chapter. Ending Questions (with answer key) to accompany.
Economic Development. E. Wayne Nafziger. Kansas State University.
killarney10mile.com arguments in favor of LDCs concentrating their antipoverty programs in rural areas. Answer: In LDCs, 63 percent of billion people and 70 percent of $1/day poor live in rural areas. Grameen Telecom in.Download