Abstract
This paper employs two-stage non-cooperative game model to probe into the formu1 lation of exporter's competitive strategy and government's optimal trade policy. The paper shows: When the exporters of two countries are in the face of Nash, Stackelberg mode and price, output to make strategies, it is solved that there will be 12 kinds of market equilibrium types. Among them the Stackelberg mode that regards the domestic manufacturers as leaders and the foreign manufacturers as price followers is the manufacturers' optimal competitive strategy. And now, it is an optimal trade policy for the country to levy a tax on the export commodities. But when the manufacturers adopt the output competition of Nash mode, then the optimal trade policy in domestic should be adjusted to export subsidies.
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