Which theory best applies to those industries capable of supporting only a few firms worldwide?
A) national defense argument
B) industrial policy
C) maintenance of existing jobs
D) strategic trade theory

Question

Quizplus · Accepted Answer

Strategic trade theory suggests that in industries where the global market can support only a few firms, governments can enhance their own country's position by supporting domestic firms. This is because such industries often have high barriers to entry and significant economies of scale, making it difficult for new entrants to compete.

Which Theory Best Applies to Those Industries Capable of Supporting