From the book Who’s Bashing Whom? we’ve learned about how developing countries can nurture their domestic industries through establishing a robust industrial policy, which often works to the detriment of existing companies. What are those policies? Also, the book describes various countermeasures, such as Cautious activism, Reciprocity and Aggressive Unilateralism etc. What are the strengths and weaknesses of each policy? Which policy do you believe is best for both preventing and countering the unfair advantages that new entrants to an industry receive from their respective governments?
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