According to the strategic trade policy argument, a government should use subsidies to

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The strategic trade policy argument suggests that a government should use subsidies to support promising firms in emerging industries. This is because emerging industries may require initial support to establish themselves in the market and compete with established firms from other countries. By providing subsidies, the government can help these firms overcome entry barriers and become competitive players in the global market. Supporting established firms in key industries may lead to inefficiencies and reduce overall competitiveness in the long run. Supporting import of goods that a country cannot produce domestically may lead to overdependence on foreign suppliers and a loss of domestic production capabilities. Supporting export of agricultural products may benefit some specific interests but may not be a sound economic policy for the country as a whole. Supporting large employers may not necessarily lead to competitiveness and may not be a targeted way to promote growth in specific industries.

According to the Strategic Trade Policy Argument, a Government Should