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Industrial Policy (Systime chapter 16) Flashcards | StudBud
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Industrial Policy (Systime chapter 16)
Industrial Policy (Systime chapter 16)
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1
What does “picking the winners” mean in industrial policy?
Subsidizing only national sports teams for global recognition
Supporting all companies equally, regardless of market potential
Only investing in industries that are currently declining
Supporting companies which have the best potential in the global market
2
Which statement best describes strategic industrial policy?
It involves protecting only the tourism sector
It eliminates government intervention in markets
It promotes self-sufficiency in essential goods during crises
It focuses solely on developing advanced technology exports
3
What is the main goal of a defensive industrial policy?
To give subsidies to companies producing advanced high-tech products
To protect and support industries that are losing competitiveness
To pick specific companies that are expected to become market leaders
To support future growth industries with potential for global dominance
4
What is the key characteristic of an innovation strategy?
Promoting large-scale layoffs in traditional industries
Supporting struggling, outdated industries
Government-led development of new, pioneering industries
Abolishing all forms of state aid to businesses
5
According to Michael Porter, what should be the government’s primary role in industrial policy?
Create favorable conditions for competition, infrastructure, and innovation
Nationalizing the most successful businesses
Preventing free-market competition from taking place
6
Why do governments initiate large publicly funded projects under an innovation strategy?
To promote a purely market-driven approach without intervention
To keep taxes low for multinational corporations
To discourage foreign direct investments
To artificially create and sustain a promising growth sector
7
According to Porter, adopting higher product standards will increase competitiveness and push innovation
True
False
8
Why did the USA pass the CHIPS and Science Act in 2022?
To develop robotics and artificial intelligence exclusively
To achieve a new level of chips flavour
To promote the agricultural sector by exporting wheat
To encourage self-sufficiency in microchip production for military reasons
9
Which of these is a strategic industrial policy that EU has implemented?
The European Chips Act
The Depressed Industry Act
10
Which of the following best describes the liberal industrial policy approach?
Creating very strict product standards to improve domestic competitiveness
Imposing sanctions on major foreign firms to reduce competition
Strong government intervention, heavy subsidies, and picking key industries
Min. government interference, allowing free market to drive biz development
11
What event made countries realize the importance of having control over vital production(strategic industrial policy)?
The fall of the Soviet Union
The coronavirus pandemic and the Ukraine war
The rise of e-commerce in the 2000s
The global financial crisis of 2008
