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klasskru [66]
4 years ago
13

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

goods?
History
1 answer:
Veronika [31]4 years ago
3 0
Inflation is one, more money into the economy means higher prices. It also shows a disregard for the Law of Comparative Advantage which is theory that countries should specialise in an industry that makes sense as so not to subsidise. 
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