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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]
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.
7 Ιουλ 2015 · Strategic trade theory can be broadly classified into three categories as: (i) the Marshallian external economy approach, (ii) the Chamberlinian large-group analysis of competition, and (iii) the oligopolistic approach.
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.
12 Νοε 2021 · The traditional trade theories assume that markets are perfectly competitive, with constant returns to scale and homogenous goods. The new international trade theory has challenged these assumptions (Krugman et al. 2020). This essay aims to discuss the new theory of international trade and its implications for designing and implementing trade ...
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.
The Concept of Strategic Trade Policy. The revolution that swept through the theory of international trade in the first half of the 1980s-the rise of the so-called new trade theory’-left many of the insights of traditional trade theory intact.
