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20 October, 21:19

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

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  1. 20 October, 21:40
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    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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