The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
Correct answer: C. Strategic trade policy
- A. international dumping
- B. countervailing duties
- C. Strategic trade policy
- D. export promotion policy
Explanation
Strategic trade policy uses government intervention, such as targeted subsidies or protection, to help domestic firms obtain economic profits in industries with international competition. Dumping and countervailing duties are specific trade practices or responses, not the broader theory described.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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