Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry,each could lose money.

Question

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If two nations subsidize firms in the same industry, it leads to an increase in supply which can lead to a price war, ultimately resulting in both nations losing money. Therefore, subsidizing an industry in the hope of establishing a worldwide monopoly can lead to losses for all the countries involved.

Among the Problems Associated with Subsidizing an Industry in the Hope