The disadvantages of strategic trade policy include economic inefficiencies, risk of trade wars, potential political corruption, strained international ...

The government may be able to create credibility through its policies. Simple setting: ignore consumer surplus, e.g. if sales are to third markets only.

There are also some risks induced by using strategic trade policy, the risk of retaliation and a trade war with the country affected by the measure and the ...

8 июн. 2023 г. · In strategic trade policy theory, market power is seen as a reason for government intervention. Perfect competition is replaced by oligopolistic competition.

The implementation of strategic trade or industrial policies is riddled with several practical problems and difficulties which may dilute the expected effects ...

Strategic trade policy aims at raising national welfare by extracting monopolistic rents from foreign producers or consumers. It is the central hypothesis ...

A main idea is that trade policies can raise domestic welfare by shifting profits from foreign to domestic firms. A well-known application is the strategic use ...

The disadvantages of strategic trade policy include the risk of trade wars, government failure, market distortions, long-term negative effects.

The main idea in this theory is that trade policies can raise the level of domestic welfare in a given state by shifting profits from foreign to domestic firms.

This paper reviews the literature on strategic trade policy. Strategic trade policy is defined as trade policy that conditions or alters a strategic ...