Strategic Trade Policy Research

The current international trade takes on a new look that competition and monopoly exist at the same time and that freedom and protection complement each other. The trend of internationalization, globalization and integration are strengthened constantly. Although free competition and free trade are what all countries and international organizations expect, enterprises and governments, because of fierce international competition, strive to use national power to build competitive monopolistic corporations in the world market, which has led to more protective force. Faced with the above situation, new international trade theories have emerged, among which strategic trade policy theory. The strategic trade policy theory broke the assumption of perfect competition which classical free trade theory sponsored, proposed the assumption of imperfect competition and increasing returns to scale, and injected new thought into research of the international trade domain.This dissertation mainly focuses on the strategic trade policy theory, the underpinnings of which are profit shifting and external economy. Profit shifting is strategic trade policy theory in the narrow sense, including rent-extracting foreign monopoly tariffs, import protection as export promotion, and export subsidies in oligopolistic industries for international market share rivalry. External economy is strategic trade policy theory in the wide sense, including its content, targeted industry, and trade and industrial policy. Many researchers expanded and developed strategic trade policy theory. The research are concerned with expansion of basic models, incomplete and asymmetric information, the choice of policy instruments, the new perspective of trade products, and the integrating welfare of all countries and the whole world.The strategic trade policy theory comes from reflection over traditional trade...