Advocates of industrial policy maintain that government should?
Apursue free trade as a policy that leads to maximum global efficiency
Bgrant subsidies to firms offering potential comparative advantage
Cincrease interest rates on loans made to firms in import-competing industries
Dprovide loans to domestic workers in exporting industries
Correct answer
B. grant subsidies to firms offering potential comparative advantage
Explanation
The correct answer is grant subsidies to firms offering potential comparative advantage.