Re:Google’s $6B Miscalculation on the EU
by JakeColtman on Friday August 07, 2015 @04:12AM
(#10021386)
I agree that protectionism is normally bad, but the reason that it is bad is that it suppresses competition most of the time.
If guelo's argument that Google not being in China fostered more tech companies in China is correct, then removing an initially dominant foreign company with big first mover advantage and economies of scale can actually increase competition in the market.
That said, once the home grown companies are sufficiently mature to compete on a level playing field with already established companies I agree the protectionism should be withdrawn again
Re:Google’s $6B Miscalculation on the EU
by CPLX on Friday August 07, 2015 @07:34AM
(#10021881)
For reference, an economist would call this the "infant industries" rationale for protectionism and it is generally considered a reasonable policy tool when done purposefully.
If guelo's argument that Google not being in China fostered more tech companies in China is correct, then removing an initially dominant foreign company with big first mover advantage and economies of scale can actually increase competition in the market.
That said, once the home grown companies are sufficiently mature to compete on a level playing field with already established companies I agree the protectionism should be withdrawn again