P/E/180. Strategic trade policies in international trade: pros and cons

The paper gives an overview of strategic trade policies that give domestic firms advantage over foreign firms. The gains a country can obtain from trade are outlined and illustrated by examples of West European countries. The paper claims that it is not the nations who compete, but the companies within nations; implementation of strategic trade policies, however, reflects the governments' concern for their nations. The risks involved in the implementation of strategic trade policies are discussed; the case studies of Airbus and Boeing are presented.