It is usually safer for a large country to subsidize its export-oriented industries rather than the import-replacing industries.

Question

Quizplus · Accepted Answer

Subsidizing export-oriented industries can lead to trade disputes and retaliations from other countries, potentially harming the larger economic interests. On the other hand, subsidizing import-replacing industries can enhance domestic production capabilities and reduce dependency on foreign goods, which might be considered safer in terms of economic security and sustainability.

It Is Usually Safer for a Large Country to Subsidize