According to Krugman,one of the Reasons for Not Embracing Strategic

question 135

Multiple Choice

According to Krugman,one of the reasons for not embracing strategic trade policy is that such a policy might:

• A)hamper the chances of a country's firms to effectively exploit first-mover advantages.
• B)be captured by special-interest groups within the economy for personal benefits.
• C)be used to establish rules of the game that minimize use of trade-distorting subsidies.
• D)divert attention from the need to establish domestic firms in a dominant position in the global industry.

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