European governments gave Airbus an implicit subsidy in the form of a reduced-rate loan of approximately $1.5 billion in 1975 dollars, but Airbus ultimately ended up losing money on the launch of the A300.This kind of example shows that strategic trade policy does not always translate into instant returns for corporations or greater national welfare, but may in fact lead to losses by encouraging overproduction by the domestic firm or failing to discourage production by the foreign firm. For this reason Grossman concluded as early as 1986, only one year after the introduction of the Brander-Spencer model, that “we do not now (and may never) have sufficient knowledge and information to merit the implementation of a policy of industrial targeting