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.

Solutions

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 1 year ago

Next > < Previous

Related Solutions

There are two questions related to Trade Regulations and Industrial Policies 1. Has industrial policy contributed...

There are two questions related to Trade Regulations and Industrial Policies 1. Has industrial policy contributed significantly to Japan's economic growth? 2. Explain how advocates of strategic trade policy differ from the classical free traders in their treatment of externalities? Each student should respond both questions by one paragraph for each.

Assuming you are a senior economist at a Trade Policy Center in Country Z. The country...

Assuming you are a senior economist at a Trade Policy Center in Country Z. The country produces steel and manufactures autos domestically. The auto industry imports cheap steel for further production of autos. Assume that director of the Center wants to impose tariffs on imported steel. Briefly explain to the director why a tariff on imported steel may lead to job gains for domestic steel workers but can at the same time lead to job losses for domestic auto workers.

Country A has 100b$ trade deficit against Country B, and Country B has 200b$ trade surplus...

Country A has 100b$ trade deficit against Country B, and Country B has 200b$ trade surplus against Country C, and Country C has 150b$ trade surplus against Country A. Moreover, assume that Country B has a balanced trade with other countries (countries other than A and C), but Country A has 100b$ trade surplus against other countries (countries other than B and C) and Country C has 100b$ trade deficit against other countries (countries other than A and B). Then,...

The debate is still going on in the country whether Fiscal policy is relevant. In at...

The debate is still going on in the country whether Fiscal policy is relevant. In at least 3 paragraphs make a case for the use of fiscal policy showing the rational for using it.

In principle, the benefits of international trade to a country exceed the costs, no matter whether...

In principle, the benefits of international trade to a country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a country, for example, workers who lose their jobs due to foreign imports. In your opinion, does that mean that trade should be inhibited to prevent the losses?

(a) Why do some economists argue for dynamic comparative advantage? How does this concept relate to industrial policy?

(a) Why do some economists argue for dynamic comparative advantage? How does this concept relate to industrial policy? Use cases or examples to substantiate your discussion. (b) Was the 1997 Asian Financial Crisis a result of government failure or market failure? Discuss. (c) Why some people suggest that deglobalization will become major global trend after the coronavirus pandemic. Do you agree with this argument? Discuss.

A worker is engaged in the sale of programmed business intelligence and has to choose Among...

A worker is engaged in the sale of programmed business intelligence and has to choose Among the following options: Monthly base salary of $ 3,000 plus 5% commission on sales made during the month. Monthly salary of $ 1,500 plus 8% commission on sales made during the month. Monthly base salary of $ 3,500 plus 2.3% commission on sales made during the month. 10% commission on sales made during the month. Each programmed business intelligence has a value of $...

Consider any recent macroeconomic policy change in your country. Indicate whether this policy change is a...

Consider any recent macroeconomic policy change in your country. Indicate whether this policy change is a demand-side measure, a supply-side measure or a combination of both. Now use the AD-AS framework to predict and critically analyse the macroeconomic impact of this policy change in South Africa. Explicitly mention whether the policy measure shifts the AD curve, the AS curve or both curves and in which direction. Also, mention how this policy change has affected - banking entity -Construction entity -manufacturing...

identify and describe at least 4 instruments of trade policy that a country may use to...

identify and describe at least 4 instruments of trade policy that a country may use to restrict trade between their country and the rest of the world?

There is an ongoing debate about whether free trade is beneficial for the global economy. Choose...

There is an ongoing debate about whether free trade is beneficial for the global economy. Choose whether you support free trade or if you prefer trade barriers. Be sure to cite specific facts and figures to support your analysis. Remember that there may be more than one perspective which could be equally valid given the circumstances. Please answer in 150 words or more.

Subjects