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Explain the arguments of those who maintain that government can play a proactive role in promoting...

Explain the arguments of those who maintain that government can play a proactive role in promoting national competitive advantage in certain industries.

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Government can influence each of the four components of the diamond either positively or negatively. Government can contour domestic demand through native product morals or with guidelines that dictate or inspire buyer requirements. Government policy can impact backing and allied industries through directive and influence firm competition through such devices as capital market regulation, tax policy, and antitrust laws.

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