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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-
Revisiting Strategic Trade Theory Indrani Roy Chowdhury 3.1 INTRODUCTION TO STRATEGIC TRADE THEORY Traditional theories of international trade explain trade in terms of the differences in endowments of factors such as resources, technology, or even tastes. This orthodoxy has been challenged from the 1970s onward
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.
developed is 'strategic trade theory' in the 1980s and 1990s which recognises that Governments and MNCs can intervene strategically in trade, in defined ways: 1. Creating barriers to entry by heavy promotional or investment expenditure. 2. Using 'economies of scale' to force down prices so deterring new competitors. 3.
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
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
6 Δεκ 2019 · This chapter first looks at the concept of strategic trade, its roots in globalisation and how the attempt to balance domestic and foreign policy goals through trade has had the unintended consequence of fuelling economic nationalism and, as a result, populism.
