According to the ________ policy, subsidies can help a firm achieve a first-mover advantage in an emerging industry.

Question

Quizplus · Accepted Answer

Advocates of strategic trade policy favor subsidies to help domestic firms achieve a dominant position in those industries in which economies of scale are important and the world market is not large enough to profitably support more than a few firms. According to this argument, subsidies can help a firm achieve a first-mover advantage in an emerging industry.

According to the ________ Policy, Subsidies Can Help a Firm