Abstract

This paper reviews recent work on the relationship between industrialorganization and international trade. Five strands in the theoreticalliterature are discussed. First is the role of economies of scaleas a cause of intra-industry trade, modelled using monopolistic competition.Second is the effect of tariffs and quotas on domestic marketpower. Third is the analysis of dumping as international price discrimination.Fourth is the potential strategy role of government policy as anaid to domestic firms in oligopolistic competition. Finally, the paperdiscusses recent work that may provide a new argument for protectionism.A concluding section discusses recent efforts at quantification of newtrade theory.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.