What are disadvantages of engaging in strategic trade policy


Problem

What are the disadvantages of engaging in strategic trade policy even in cases in which it can be shown to yield an increase in a country's welfare?

Suppose the U.S. government were able to determine which industries will grow most rapidly over the next 20 years. Why wouldn't this automatically mean that the nation should have a policy of supporting the growth of these industries?

If the United States had its way, it would demand that Japan spend more money on basic research in science and less on applied research into industrial applications. Explain why in terms of the analysis of appropriability.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: What are disadvantages of engaging in strategic trade policy
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