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Essay specific features
Written by:
Chasity V
Date added:
October 9, 2014
Level:
University
Grade:
B
No of pages / words:
3 / 835
Was viewed:
6118 times
Rating of current essay:
Essay content:
This is closely aligned with anti-globalization, and contrasts with free trade, where no artificial barriers to entry are instituted.
Theory vs. Facts: Side Effects
The theoretical case for trade protection rests on market failures that can be corrected by government intervention.
Examples;
- If learning-by-doing is the key for success, a firm may become internationally competitive only if it acquires extensive experience in production...
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However, this would mean that the firm would lose a great deal of money while trying to achieve the said level of experience. Thus, government help might be necessary to give the firm a start.
- A mining enterprise will be profitable only if a railway firm is established or vice versa. The government could help coordinate the two firms' business relationship...
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