According to the strategic trade policy argument,a government should use subsidies to do what?

Question

Quizplus · Accepted Answer

The strategic trade policy argument suggests that a government should use subsidies to support promising firms in emerging industries. This is because the government wants to build up these industries in order to compete with established industries in other countries. By supporting these firms, the government can create jobs and increase economic growth in the long run.

According to the Strategic Trade Policy Argument,a Government Should Use