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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]
This paper reviews the literature on strategic trade policy. 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.
25 Ιαν 2017 · This article presents the background and the basic framework of the strategic trade policy, and discusses the development of the strategic trade theory internationally and for its application in China.
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 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]
Theories of strategic trade policy that allow for oligopoly and for strategic interactions, and which appear to justify trade interventions, are analysed sceptically. Also discussed is the industrial policy, and the argument that import protection may be justified if it fosters exporting.