An important component of strategic trade policy is that it might pay governments to intervene in an industry if it helps domestic firms overcome the barriers to entry created by foreign firms that have already reaped _____.

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The strategic trade policy argument suggests that it might pay a government to intervene in an industry by helping domestic firms overcome the barriers to entry created by foreign firms that have already reaped first-mover advantages.This argument underlies government support of Airbus,which benefited from a $15 billion subsidy from the governments of Britain,Spain,Germany,and France to become Boeing's major competitor.

An Important Component of Strategic Trade Policy Is That It