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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 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.
The popular understanding of the meaning of strategic trade policy or ‘industrial policy’ is far broader. Many justifications are given for governments trying to ‘pick winners’ and in various ways trying to foster the expansion—especially into export markets—of particular firms or industries.
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.
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.
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.
