National production branch

Commerce

The domestic industry is a production area that is of great importance to the national economy of a country.

It is a concept widely used in international trade to define the group of companies that manufacture the same good and whose joint production has a very important weight in the economy of a country.

The World Trade Organization (WTO) establishes a series of protectionist measures to prevent a country's companies from being harmed by unfair trade practices. These measures consist of tariffs and quantitative restrictions on imports (quotas or quotas).

What is meant by injury to the domestic industry?

Injury to a domestic industry can be of two kinds:

  1. Serious damage: There is significant damage to national companies that produce a certain good.For this, factors such as the level of exports and imports, profit and loss, productivity and employment in the domestic industry must be analyzed.
  2. Threat of damage: There must be a well-founded possibility of damage to the national industry. It is useless to plead assumptions, conjectures, or remote possibilities.

In order to establish that the injury to an industry is serious, a causal relationship must be demonstrated, that is, it must be proven that the increase in imports has harmed one of the domestic industries.

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