Proponents of strategic trade policy contend that:
a. government should tax domestic firms to generate greater revenues.
b. government should encourage imports to prevent monopoly in the domestic market.
c. government should provide subsidies to domestic firms with decreasing costs.
d. government should discourage domestic firms with decreasing costs from continuing production.
e. government should tax domestic import competing firms.
c
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Suppose real GDP grows at 7 percent per year and the population grows at 2 percent per year. How many years will it take for real GDP and real GDP per person to double?
What will be an ideal response?
Sellers in which of the following market structures are likely to have the highest market power?
A) Monopoly B) Oligopoly C) Perfect competition D) Monopolistic competition
An increase in interest rates might ________ saving because more can be earned in interest income
A) encourage B) discourage C) disallow D) invalidate
A budget ________ occurs when government expenditures exceed tax revenues for a particular time period
A) deficit B) surplus C) surge D) surfeit