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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. In particular, introducing im-
1 Φεβ 2007 · Strategic trade theory offers a way of conceptualizing and testing for strategic government interventions in imperfectly competitive international markets. This...
trade, the existence of multinational corporations, and the emergence of an international technology gap. Furthermore, the literature in this area has deepened our understanding of the issues involved in trade policy analysis.1 What is strategic trade theory? Let us present the argument in a stylized
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.
This chapter explains how developments in international trade theory influence our understanding of the changing pattern of competitiveness at the levels of the country, the industry and the firm.
1 Αυγ 2000 · Strategic trade theory offers a way of conceptualizing and testing for strategic government interventions in imperfectly competitive international markets. This survey critically assesses recent … Expand
Our approach to trade theory and empirical work embodies a philosophy and pedagogy that helps unify the subject and the analysis. We have long maintained that there are many
