One of the important points of criticism of industrial policy is that:
A)it can lead to stiff competition among the domestic firms in an economy.
B)small domestic firms will not be able to survive economic clustering.
C)government sponsored research will end up benefitting foreign countries.
D)it can prohibit regional innovations.
E)the knowhow in one firm will not spill over to other firms in an economy.

Question

Quizplus · Accepted Answer

Government-sponsored research potentially benefiting foreign countries is a point of criticism for industrial policy. This is because the benefits of such research, funded by a country's government, might not be confined within national borders, leading to international firms or countries gaining advantages from the investments made by another country's government.

One of the Important Points of Criticism of Industrial Policy