Strategic trade policy suggests that a government should use ________ to support promising firms that are active in newly emerging industries.

Question

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It is argued that by appropriate actions, a government can help raise national income if it can somehow ensure that the firm or firms that gain first-mover advantages in an industry are domestic rather than foreign enterprises. Thus, according to the strategic trade policy argument, a government should use subsidies to support promising firms that are active in newly emerging industries.

Strategic Trade Policy Suggests That a Government Should Use ________