Subsidized Education and the Free Market

[Tex2002ans]

This seems eerily similar to the Protectionism argument which was given here:

Protectionism - "Infant Industry" argument

However, if that capital is comming from abroad, then this is not a particular cost that nation has to worry about. I know there are other arguments. Let’s assume that North Korea is really good at producing coffee brewers and South Korea is not. For the sake of the argument, we assume that trade occurs between those two countries only. South Korea’s capital and labor forces will therefore not waste time, money and opportunity costs for building up an industry that may not be able to compete ev…