Paul Krugman argues that although strategic trade policy looks unappea

QUESTION

Paul Krugman argues that although strategic trade policy looks unappealing in theory, in practice it is most likely to be workable.

Indicate whether the statement is true or false.

ANSWER

FALSE
In response to certain challenges to economic orthodoxy, a number of economists—including some of those responsible for the development of the new trade theory, such as Paul Krugman—point out that although strategic trade policy looks appealing in theory, in practice it may be unworkable. This response to the strategic trade policy argument constitutes the revised case for free trade.