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Chako Chako
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8 years ago
In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of
A) the "multiplier" effect of government expenditures.
B) the economies of scale once the company enters the market.
C) the forward and backward linkage effects of certain industries.
D) the deterrent effect of the subsidy on foreign competition.
E) the military-industrial complex.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Good answer, thank you
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#3
8 years ago
Good luck
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