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ruugan ruugan
  • 25-06-2015
  • History
Answered

Is there any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods?

Verified Answer :

HistoryGuy HistoryGuy
  • 28-06-2015

Yes, there is a disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods in that it alters the world of supply and demand, and increases the likelyhood that bad management will stay in place.

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