If a Government Subsidizes Its Firm's Efforts and Increase

question 64

Multiple Choice

If a government subsidizes its firm's efforts and increase
Sales and profits from international operations by more
Than the cost of the subsidy:

• A)it will be viewed as a strategic policy success.
• B)we have to discount any success because of the environmental degradation that always occurs.
• C)there will be a negative effect because the government should not and does not subsidize to gain international
• Position for private firms.
• D)there could be increased costs in the future.

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Definitions:

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