Which of the following is NOT a problem in the implementation of industrial policies?
A)Choosing the industry to target
B)Knowing the optimum amount of resources to provide the targeted industry
C)The encouragement of rent seeking by firms in other industries
D)The benefits are captured only by domestic firms.

Question

Quizplus · Accepted Answer

The benefits of industrial policy can also be enjoyed by foreign firms operating in the targeted industry, which can result in increased competition and overall improvement in the industry's performance. Therefore, D is not a problem in the implementation of industrial policies. A, B, and C are all valid concerns in industrial policy implementation.

Which of the Following Is NOT a Problem in the Implementation