MERCANTILISM AND INFANT INDUSTRIES 5
protection to develop its industries. Newer economies in this current dynamic market are highly
vulnerable. This vulnerability arises due to the ease at which trade has been made between
different countries across the globe. Such, infant industry argument is brought into the picture to
help those small industries thrive in an inherently competitive economic market.
About the above-discussed infant industry argument, mercantilism presents the same
argument to some context. Evidence of mercantilism first appeared in Pisa, Genoa, and Venice.
During the Elizabethan era, mercantilism was first practiced on a large scale (Ormrod, 2003).
Mercantilism like infant industry relies on maximizing net exports as the best route to national
wealth. Infant industry argument wants the best for the nascent industries in the economy.
Mercantilism in its objective of ensuring the country has protected the domestic companies. For
example, during the raw wool boom in the United Kingdom, the country banned raw wool
import. That wool that was of high quality than the domestic ones were even strictly restricted
from being imported into Britain (Ormrod, 2003). As much as this was a way of making the
country wealthier, it is also a form of infant industry mechanism. In the process of restricting
imports, the country managed to encourage the infant industries that produced raw wool.
Infant industry argument was also witnessed recently in Brazil were the country shielded
its computer industry by protecting it against international companies (Roland, 2013). The
computer industry grew tremendously over the years becoming one of the leading industries in
the world. As much as this was an infant industry technique. It is also a form of mercantilism to
some context. The country was ensuring that its computer industry is growing at the expense of
other computer industry in other countries. As such, it can be seen that Infant industry argument
and mercantilism are connected in some ways, and their undertaking is related to some extent.