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
You might also like to view...
The burdens of the national debt generally fall on
A) the present generation. B) past generations. C) future generations. D) all of the above.
OPEC was able to function as an extremely successful cartel in the last half of the 1970s because
A) it was an association of governments rather than of private individuals. B) it was able to separate OPEC oil from non-OPEC oil and to engage in price discrimination. C) the increasing scarcity of oil produced an upward-sloping marginal revenue curve. D) the widespread expectation of much higher future prices discouraged current production. E) wars in the Middle East raised the marginal cost of producing oil.