Choose a country that has engaged in industrial trade policy and argue whether this was, on...

Choose a country that has engaged in industrial trade policy and argue whether this was, on balance, a successful strategy or not. Be as specific as possible about the gains from trade and the potential risks inherent with this type of policy.

Expert Solution

The industrial policy provides a set of rules, regulations in public and private sectors.It really helps not to concentrate money and wealth in few companies and to decentralize the wealth in all spheres.

An industrial policy achieved through good processes can encourage and support innovation, and help develop the companies of the future. It can avoid limits on competition and thus need not be antithetical to trade policy.

Industrial policy of Malaysia increased the wealth and production of the country's output which helps to increase the profitability. Intervention poicies affected Malaysia’s gross output always differentiate itself from value-added component. Profitability of Malaysia’s manufacturing industry as equalled by value-added is strongly linked to foreign direct investment (FDI). By bringing modern technologies and technical know-how, increased productivity of Malaysia's FDI. Government intervention helped Malaysian economy to increase FDI and productivity.

industrial policy of the country provides little boost to its FDI. However, Malaysian manufacturers requires foreign labour despite having its labour.

Rahul Sunny answered 2 years ago

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