Incentive to protect this firm from competing imports

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Reference no: EM131003251

A single firm’s innovations in production technology often benefit the production of other firms, because these other firms learn about the new technology and can use some of the ideas in their own production. Based on this information, answer the following questions.

a) Why does this positive externality create an incentive to protect this firm from competing imports?

b) What type of remedy would be most efficient in protecting this firm from competing imports? Explain why it would be preferable to other methods

Reference no: EM131003251

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