Which of the following is a common feature of national industrial policies?

• A. Government support for specific industries
• B. Elimination of all tariffs and trade barriers
• C. Reliance solely on private sector decision-making
• D. Complete absence of market regulation

Answer: (A)

Verified step by step guidance

1. Understand the concept of national industrial policies: These are strategies implemented by governments to promote and support specific sectors or industries within the economy.
2. Recognize that national industrial policies often involve government intervention aimed at fostering growth, innovation, or competitiveness in targeted industries.
3. Identify common tools used in industrial policies, such as subsidies, tax incentives, research and development support, and sometimes protective measures like tariffs or quotas.
4. Contrast these policies with approaches that eliminate tariffs and trade barriers or rely solely on private sector decision-making, which are generally not features of industrial policies.
5. Conclude that a common feature of national industrial policies is government support for specific industries, rather than complete deregulation or absence of market intervention.