It is argued that strategic trade may not work because:

Question

Quizplus · Accepted Answer

Strategic trade involves government intervention and support for specific industries in the economy. However, there is often a debate about the effectiveness of such intervention, and one of the arguments against it is that the government may not be as successful at "picking winners" as the private sector. In other words, there is a risk that the government may mistakenly support uncompetitive industries, leading to a misallocation of resources and ultimately harming the economy. Comparative advantage, on the other hand, can change over time and is not a fixed concept.

It Is Argued That Strategic Trade May Not Work Because