Trade Warriors: States, Firms, and Strategic-Trade Policy in High-Technology Competition

by Marc L. Busch

Overview

In such areas as civil aircraft, semiconductors, high definition television, robotics, and superconductors, states are subsidizing their national champions and competing for market share in the "industries of tomorrow." This book explains why states intervene and (or) retaliate in some high technology industries, but not in others, and how these commercial rivalries are likely to unfold. Dr. Busch argues that states subsidize national champions in industries promising externalities for domestic industries, spend more on subsidies where these benefits do not escape national borders, and are more likely to bring these commercial rivalries back from the brink of a trade war where these subsidies leave both states worse off.

Product Details

ISBN-13:	9780521633406
Publisher:	Cambridge University Press
Publication date:	05/28/1999
Pages:	224
Product dimensions:	5.98(w) x 9.02(h) x 0.63(d)

Table of Contents

1. Introduction; 2. The argument; 3. The Civil Aircraft rivalry; 4. The semiconductor rivalry; 5. The high definition television rivalry; 6. Robotics, superconductors and wheat; 7. Conclusion.

Editorial Reviews

"Marc Busch has written an excellent book. Trade Warriors is essential reading for anyone interested in the scholarly and policy debates over strategic trade and industrial policy. It breaks new ground in our understanding of the role played by the state in competition at the frontier of advanced technology." Michael Mastanduno, Dartmouth College

"This book successfully integrates game theory and industrial economics with a series of case studies to illuminate the dynamics of state support for high-technology firms and sectors. Its explanation for the circumstances in which governments pursue particular strategies makes an important theoretical contribution to the literature on strategic trade policy." David Vogel, University of California, Berkeley

"Trade Warriors is an important and original extension of the great debate over strategic trade. Marc Busch challenges liberal and statist orthodoxies. This well reasoned and carefully researched book will force a fundamental reappraisal of Krugman, Tyson, Grossman, and Reich." Kenneth Oye, MIT

From the Publisher