Tables 11-1 and 11-2 presented a situation in which European governments were able to use a subsidy

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Tables 11-1 and 11-2 presented a situation in which European governments were able to use a subsidy to achieve a strategic advantage, while Tables 11-3 and 11-4 presented a situation in which it could not. What is the crucial distinction between these two cases? That is, what is the general rule for determining when a subsidy can work?

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International Economics Theory & Policy

ISBN: 9780138002121

8th Edition

Authors: Paul R Krugman, Maurice Obstfeld

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