An Alternative to Free Trade or Protectionism: Why Corporations Seek Strategic Trade Policy

@article{Yoffie1989AnAT,
  title={An Alternative to Free Trade or Protectionism: Why Corporations Seek Strategic Trade Policy},
  author={David B. Yoffie and Helen V. Milner},
  journal={California Management Review},
  year={1989},
  volume={31},
  pages={111 - 131}
}
Conventional theories of the political economy of trade argue that industries in importcompeting businesses favor protectionism while multinationals and export-dependent corporations advocate unconditional free trade. However, many multinational industries have recently advocated "strategic" trade policies: i.e., potential closure of the domestic market if foreign markets remain closed or if foreign government subsidies are not reduced. This article explains why companies seek strategic trade… Expand
17 Citations

Figures from this paper

The business of buying American: Public procurement as trade strategy in the USA
For all its importance as a policy tool around the globe, the study of public procurement has barely begun. The role of government purchasing in trade strategy, in particular, has been virtuallyExpand
Assessing the Benefits of Free Trade
Trade-centered strategies have become the preferred option for governments in the nineties. These policy initiatives need to be assessed to determine whether they are delivering their promise ofExpand
International production in a volatile regulatory environment: the influence of national regulatory policies on the spatial strategies of transnational corporations
Abstract In face of the globalising strategies of transnational corporations (TNCs) it has become conventional wisdom in some quarters to regard the nation-state as an increasing irrelevance. TNCs,Expand
The Future of NAFTA in the Post-National Era
The formation of the North American trade bloc represents a dramatically different variant of trade liberalization from its Cold War predecessor. The latter reconciled the need to promote greaterExpand
Decline and growth, privatization and protectionism in the Middle East airline industry
Abstract The changing international air transport environment creates challenges for the management of the national airlines in the Middle East. The rapid development of this area's civil aviationExpand
The impact of home-country conditions and geographical diversification on the domestic productivity of telecom multinationals
Previous work in international business largely disregards the interplay between home-country conditions and firms’ geographical diversification – implying that, regardless of indigenous conditions,Expand
Behavioral elements in foreign direct investments
The success of multinational enterprises (MNEs) is at least as much a function of management ability and behavior as it is of industry characteristics or environmental factors. MNE managers, like allExpand
Credible Entry Threats into Contestable Markets: A Symmetric Multi-Market Model of Contestability
The theory of contestable markets emphasizes potential competition; yet it is reticent on the identity of potential entrants. Recent literature discusses the (im)possibility of hit-and-run entry forExpand
Do Japanese Firms Smooth Their Financial Results
ABSTRACT This paper attempts to determine whether Japanese companies “smooth” (i.e., reduce variations in) their financial results. It has three major objectives: (1) to establish a “motive” whichExpand
The political economy of contemporary regional integration: Evidence and interpretation.
This research takes a rigorous approach to examining available data for signs of regional integration and interprets the findings in terms of their illustration of the changing structure of theExpand
...
1
2
...

References

SHOWING 1-10 OF 45 REFERENCES
The political economy of U.S. import policy
Although trade-policy issues are becoming increasingly important, there is little rigorous analysis of the nature of the decision-making process that includes both economic and political factors.Expand
THE DYNAMICS OF NEGOTIATED PROTECTIONISM
R ecent protectionism by the United States has principally taken the form of negotiated barriers to trade, such as voluntary export restraints. These barriers tend to evolve over time and to displayExpand
The Structure Within Industries and Companies' Performance
THE theory of industrial organization has by and large viewed the industry as a homogeneous unit. Firms in an industry are assumed to be alike in all economically important dimensions except forExpand
Tariffs and the Extraction of Foreign Monopoly Rents under Potential Entry
This paper examines the incentives for using tariffs to extract monopoly rents from imperfectly competitive foreign firms. Using a simple Stackelberg entry deterrence model, the rent-extractingExpand
THE IMPACT OF HUB AND SPOKE NETWORK CENTRALIZATION AND ROUTE MONOPOLY ON DOMESTIC AIRLINE PROFITABILITY
Since airline deregulation in the United States began in 1978, domestic airlines have suffered declines in operating incomes, or, in some cases, increases in operating loss es.1 However, if theExpand
Reciprocity in international relations
World politics is commonly referred to as anarchic, meaning that it lacks a common government. Yet a Hobbesian “war of all against all†does not usually ensue: even sovereign governments thatExpand
Testimony at Hearings of the House Subcommittee on Commerce, Consumer Protection, and Competitiveness
  • Energy and Commerce Committee, June
  • 1987
...
1
2
3
4
5
...