Doing otherwise would just result in the internal industry being bought out for pennies or being obliterated by advanced competitors.

Protectionism doesn't guarantee that a country will be successful at building cars, but they should at least bloody try to before giving up.

And yes, capitalism can improve a country's fortunes if applied judiciously. Merely opening the markets to a free for all wil just result in the vultures swooping in, getting rich and leaving some rests for the locals.