Government of alpha subsidized computer making industry

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Question

Suppose the government of Alpha subsidized its computer making industry, enabling Alpha's producers to undersell foreign compute producers. The law of comparative advantage indicates that computer-importing nations would best take advantage of the Apha's subsidization policy by: setting a tariff high enough to just offset the subsidy granted to the Alpha computer-making industry. setting a declining quota on the import of Alpha computers such that the nation's domestic computer-making industry would continue to grow at the same rate as the rest of the economy.

Reference no: EM133637298

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