Strategic trade theory
A) provides unambiguous support for the claim that government intervention in high-technology industries can raise national income.
B) suggests it is easier for governments to identify which high-technology industries can raise national income because of national security interests.
C) does not provides unambiguous support for the claim that government intervention in high-technology industries can raise national income.
D) is strong because it makes it easier to translate the theory's simpler conclusions into effective policies.
E) is more of an explanatory theory than a prescriptive theory.

Question

Quizplus · Accepted Answer

While strategic trade theory suggests that government intervention in high-technology industries can potentially raise national income by supporting domestic firms compete against foreign firms, the theory does not provide unambiguous support for this claim as there are potential drawbacks and limitations to government intervention. The effectiveness of government intervention in raising national income can also depend on a variety of factors and conditions.

Strategic Trade Theory