The CHIPS and Science Act (enacted in August 2022) provides about US$ 280 billion to support domestic research and manufacturing of semiconductors in the US.
a) Is this legislation a type of an industrial policy? Explain.
b) What are some of the arguments for and against industrial policy? Do you think the legislation is going to help the US maintain its dominance in the semiconductor sector? Explain.
c) In your view, how should Asian economies such as China and India respond to it? Explain.
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