According to Krugman,the Ideal Way for a Country to Respond,when

question 76

Multiple Choice

According to Krugman,the ideal way for a country to respond,when the foreign competitors of its companies are already being supported by government subsidies,is probably not to engage in retaliatory action,but to

• A)help establish rules that minimize the use of trade-distorting subsidies.
• B)adopt the strategic trade policy as a way to establish domestic firms in a dominant position in the global industry.
• C)provide a subsidy to a new industry where the foreign competitors have not had the benefit of such strategic trade policies.
• D)use a combination of home-market protection and export-promoting subsidies.
• E)provide high levels of subsidies to the oldest industry in the country.

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Definitions:

Anally Fixated

A term from Freudian psychoanalysis indicating a person who is said to have unresolved conflicts during the anal stage of development, potentially leading to traits such as obsessiveness, stinginess, or orderliness.

Anal Stage

The second stage in Freud's psychosexual development, characterized by a focus on controlling bladder and bowel movements.

Personality

Describes the unique set of emotional, attitudinal, and behavioral response patterns of an individual.

Sexual Instincts

The innate or biologically driven forces that motivate individuals to seek out sexual activities or behaviors.