International Co-ordination of Domestic Industrial Policies

Abstract

International co-ordination of individual countries’ industrial policies1 is viewed entirely differently from international co-ordination of their macroeconomic policies. Although many argue for active international co-ordination of domestic macroeconomic policies, the general attitude toward industrial policy has been that, while barriers to trade should be removed, domestic economic policies should be left to the discretion of individual countries. Although the post-war GATT system has contributed greatly to the efficiency of the international economic system by removing quotas and cutting tariffs, it has made almost no effort to develop any broader international co-ordination of domestic industrial policies.KeywordsForeign FirmIndustrial PolicyDomestic FirmInternational Joint VenturisMonopoly RentThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.