Strategic trade theory suggests that strategic intervention by governments in certain industries can enhance their odds for international success.These industries:
A) are highly capital-intensive industries.
B) are highly labor-intensive industries.
C) have low barriers to entry.
D) let domestic firms enter the market easily without government assistance.

Question

Quizplus · Accepted Answer

Strategic trade theory suggests that government intervention is beneficial in industries that are capital-intensive and have high barriers to entry, where economies of scale and first-mover advantages are significant.

Strategic Trade Theory Suggests That Strategic Intervention by Governments in Certain