dimanche 19 juillet 2015

How can import duties protect businesses which creates new industry in a country?

In very poor countries like Somalia, if an entrepreneur started a business never started before in that country, producing a product which's really highly demanded in poor countries, he produces a flour.

Somalia always import flour from neighboring countries. And after started his business, let's say he realized that his products are expensive than the ones being imported. Would the country protect that newly created industry despite the fact that it's cheaper if the flour is being imported from neighboring countries? Not to mention that since it's a poor country and flour is their common food, none is sure whether it's people would try swallowing the fact that the prices suddenly rose up.

So, what do you think?


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