What argument would you use?  Suppose that the European Commission asked you to develop a brief on behalf of subsidizing European software development, bearing in mind that the software industry...

What argument would you use?

 

Suppose that the European Commission asked you to develop a brief on behalf of subsidizing European software development, bearing in mind that the software industry is currently dominated by U.S. firms, notably Microsoft.

 

Expert Answers
pohnpei397 eNotes educator| Certified Educator

The most likely way to go about this would be to make the argument that customers would actually be better off if EU countries subsidized their software manufacturers.

Of course, subsidies would raise the cost to the taxpayers.  But they would also increase the supply of software and would help to break the near monopolies held by Microsoft and some others.  This means that, in the long run, the taxpayers would benefit from greater quality of software and lower prices.

So I would cast it as a way of increasing competition and I would argue that subsidies would be removed once the European companies got on their feet.

krishna-agrawala | Student

Monopoly of Microsoft in software of certain kind, and success of software in general is dependent more on the quality and utility of software rather than the cost of creating the software. Subsidising of software development cost or the selling prices is not likely to have much impact on the quality of the software developed. Thus subsidising the software development cost does no appear to be a very good policy to promote software industry in EU countries or in any other place.

It wold be better to provide better training and other facilities that promote the capability of EU people and businesses to develop better software faster. The EU may consider subsidising such support facilities. If done the right way, the amount spent on subsidies for such activities will be more than recovered for the country in higher productivity and profit of software industry.