To support firms

• Subsidization of firms such as agriculture to lower production costs and encourage more output.
• Tax concessions by offering tax allowance or discounts to reduce burden on firms, especially new businesses.
• Domestic infant industries are newly established firms in markets that are possibly dominated or threatened by foreign competitors.
• To support domestic infant industries, the government can enact:

  • Tariffs imposed on foreign imports
  • Quotas to limit the volume or value of imports
  • Subsidies to domestic producers and lower their costs of production
  • Administrative barriers imposed on foreign imports
• Research and development funding


  Financial assistance offered to help firms with innovation
• Financial bailouts


  For businesses deemed strategically important to the economy, governments may choose to intervene and save it.
• Business development loans


  Financial assistance offered to businesses at relatively low interest rates to fund operations and encourage growth