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Strategic trade theory (sometimes appearing in literature as "strategic trade policy") describes the policy certain countries adopt in order to affect the outcome of strategic interactions between firms in an international oligopoly, an industry dominated by a small number of firms. [1]
Strategic trade theory (sometimes appearing in literature as "strategic trade policy") describes the policy certain countries adopt in order to affect the outcome of strategic interactions between firms in an international oligopoly, an industry dominated by a small number of firms. [1]
8 Σεπ 2024 · Strategic trade policy plays a crucial role in the economic growth and competitiveness of nations. By supporting specific industries, governments can help domestic firms overcome barriers to entry and achieve economies of scale, making them more competitive in global markets.
21 Δεκ 2016 · Strategic trade policy refers to trade policy that affects the outcome of strategic interactions between firms in an actual or potential international oligopoly. A main idea is that trade policies can raise domestic welfare by shifting profits from foreign to domestic firms.
A trade policy intended to influence the trade policies of other countries. A policy is said to be strategic if, while it would not be beneficial to adopt it if the policies of all other countries were taken as given, adopting it may be beneficial if it caused other countries to change their trade policies.
Strategic trade policy is defined as trade policy that conditions or alters a strategic relationship between firms, implying that strategic trade policy focuses primarily on trade policy in the presence of oligopoly.
1 Ιαν 1995 · The chapter defines strategic trade policy as the trade policy that conditions (or alters) a strategic relationship among firms. This definition implies that the existence of a strategic relationship among firms is a necessary precondition for the application of strategic trade policy.
