Project #53642 - international economics

Choose an industrial policy and analyze it according to the criteria given in Chapter 5. Begin with a description of the policy and then focus on whether the policy is justified.

In particular:


• For what market failure is the policy designed to compensate?
• Does the description of the policy address this issue? Explain.
• Are there justifications for this particular industry and not for others? Explain.
• Finally, what are the reciprocal obligations of the industry?
• Is it required to invest its own resources? Explain.
• Are limits placed on its scope of action so that it cannot simply accept any assistance without meeting some criteria for using the assistance? Explain.

policy according to chap 5 is shown in powerpoint in file

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