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The text points out that modern ideas of strategy, pioneered by Michael Porter, have turned IO economics "on its head." While IO economics attempts to prevent any firm from gaining sustained competitive advantage, the very purpose of strategy is to gain a sustainable advantage. Is that good or bad?
Domestic Investment
Investment in the financial assets and physical infrastructure within a country's own borders.
National Saving
The sum of private and public savings in an economy, representing the total amount of savings generated within a country.
Budget Deficit
The financial situation where an entity's expenditures exceed its revenues.
Import Quotas
Government-imposed limits on the quantity or value of goods that can be imported into a country.
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