It May Be Argued That Japan's Explicit Promotion of Its

question 24

Essay

It may be argued that Japan's explicit promotion of its microchip industry was an excellent example of successful industrial policy. What criteria would you apply to determine whether such a policy is or is not successful?
Judging from your own stated criteria, was Japan's exercise successful?
Why or why not?
What information would a government require in order to increase the probability that its industrial policy would promote long-term self-generated economic growth?

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Definitions:

Warrants

Securities that grant the holder the right to purchase the issuer's stock at a specified price within a certain time frame.

Exercise Price

The rate at which an option's owner is entitled to purchase or sell the base asset.

Coupon Interest Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, paid from issuer to bondholder.

Straight Bonds

Debt securities issued by corporations or governments that pay periodic interest payments and return the principal amount at maturity without any special features such as convertibility or callability.