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National industrial policy in America - Research Paper Example

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“National industrial policy is a government-sponsored economic program in which the public and private sectors coordinate their efforts to develop new technologies and industries. Government provides the financial support and capital to the private sector by direct subsidies, tax credits, or government-run developmental banks. …
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National industrial policy in America
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Download file to see previous pages U.S. government subsidies can also be found in such areas as defense, energy, transportation, and home construction.” (Reich, 1991). The National Industrial Policy in US have been one of the hot and happening topics in the recent time and is subjected to mixed reactions from different corner. This paper will discuss about the cons of the Industrial policies in America and is set to provide sources supporting it. Let us take the instance of Soviet Union. Industrial policies have been used elsewhere in the world and have proved unsuccessful. The fall of the former Soviet Republic stands proof to this. An industry definitely require motivation to build up which can be achieved only when there is a competition. Also, a competitive market can be measured well unlike other market. According to (Grahame 1989), “The competitiveness of an economy can be a rather elusive concept since there are a number of ways in which it can be defined and measured”. National industrial policy (NIP) has been defined in different ways by many scholars. For instance Johnson outlines that "Industrial policy means the initiation and coordination of governmental activities to leverage upward the productivity and competitiveness of the whole economy and of particular industries in it." (1984, p. 8) while others referring to it as the “….relationship between business and government on a microeconomic level” (Wachter and Wachter 1981). ...Download file to see next pagesRead More
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