Question

You have just been put in charge of trade policy

for Malawi. Coffee is a recent crop that is growing

well and the Malawian export market is developing. As such, Malawi coffee is an infant industry. Malawi coffee producers come to you and ask for tariff protection from cheap Tanzanian coffee. What sorts of policies will you

enact? Explain.

Short answer

Policies that can provide subsidies will be more beneficial for the Malawi coffee industry.

Step-by-step solution

Step 1. Meaning 

Trade policies are the policies that are introduced as trade-oriented.

Infantry industries are the Industry that recently came into existence or developing industries.

Step 2. Explanation 

Infant industries have greater potential & it is always the good policy that provides subsidies to grow more & extension, rather than imposing tariffs on another industry, traffic could be a short-term approach but by subsidies, a country can enjoy long-term benefits.

if Malawi's government provides subsidies to the coffee industry then that country can extend its capital, add more workforce & does more marketing that will enhance the export of the industry.