What are the key assumptions that allow strategic trade policy to work in the Brander- Spencer example

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What are the key assumptions that allow strategic trade policy to work in the Brander- Spencer example of Airbus and Boeing?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:42 PM

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What are the key assumptions that allow strategic trade policy to work in the Brander- Spencer example

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A subsidy is effective when the firm in the other country does not produce ...View the full answer

International Economics Theory and Policy

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