One of the Important Points of Criticism of Industrial Policy

question 41

Multiple Choice

One of the important points of criticism of industrial policy is that:

• A)it can lead to stiff competition among the domestic firms in an economy.
• B)small domestic firms will not be able to survive economic clustering.
• C)government sponsored research will end up benefitting foreign countries.
• D)it can prohibit regional innovations.
• E)the knowhow in one firm will not spill over to other firms in an economy.

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Definitions:

Environmental Harm

Damage caused to the natural environment due to human activities or natural disasters, often leading to biodiversity loss, pollution, and climate change.

Fiduciary Duty

A legal or ethical relationship of trust where one party, known as a fiduciary, is required to act in the best interest of another party, typically a beneficiary.

Modern Business Practice

Contemporary methods, strategies, and approaches adopted by businesses to operate efficiently and competitively.

Obligation

A legal or moral duty to do something or to refrain from doing something.