LIMITS AND DIFFICULTIES IN IMPLEMENTING THE STRATEGIC TRADE POLICY
Journal Title: CES Working Papers - Year 2012, Vol 4, Issue 4
Abstract
This paper provides a critical analysis of the strategic trade policy, in terms of limitations and difficulties involved in its implementation. Even there are many arguments used by its supporters for justifying the importance of this type of measures, it is impossible for the state to formulate useful interventionist policies, given the empirical difficulties involved in modeling markets with imperfect competition. Also, any potential gain created by government intervention can dissipate through the entry of new firms, stimulated by the possibility of such profits, while the need of a general equilibrium increases the difficulty of interventionist process. 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 diversion of government intervention by certain interests, transforming it into an inefficient income redistribution national program.
Authors and Affiliations
Liviu-George Maha , Andreea-Nicoleta Donici , Andreea Maha
Keywords
Related Articles
- EP ID EP92990
- DOI -
- Views 155
- Downloads 0
THE EMERGENCE OF THE EUROPEAN COUNTERFEIT MARKETS
The European market of counterfeit goods has become a subject of increasing concern for businesses, private firms and policymakers. With a growing demand in consumption for this kind of goods, each sector is damaged from...
PUBLIC EDUCATION AND ECONOMIC COMPETITIVENESS
There is a certain connection between education and economic competitiveness. The relation between these two concepts is easy to intuit. On the medium and long term investments in education generate a strong increase in...
THE EXPANSION OF EUROPEAN BUREAUCRACY
Throughout history political building meant also the development of the administration. Descriptions and complaints about bureaucracy in the EU are numerous, but the supra-national bureaucracy is not exactly replicating...
MACROPRUDENTIAL INSTRUMENTS USED BY EASTERN EUROPEAN COUNTRIES
The recent financial crisis has highlighted the lack of analytical frameworks to help predict the global financial imbalances. The recent financial crisis has determined an increasing number of countries to use macroprud...
”THE EUROPEAN DREAM”- A MORE SOCIAL EU. FROM THE ECONOMIC AND FINANCIAL CRISIS TO EUROPE’S 2020 AGENDA
Major challenges have been created by the unprecedented international economic and financial crisis (starting Autumn 2008) with significant impact on the EU’s social sector calling into question not only the banking sect...