Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute

Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share may be implemented with fairly weak informa- tional and administrative requirements. Moreover, such policies can be both pro-competitive and advatageous to US firms.

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Year of publication:	1996-07
Authors:	Krishna, Kala ; Morgan, John
Institutions:	National Bureau of Economic Research (NBER)

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Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	ITI published as European Economic Review, Vol.42, no.8 (October 1998): 1443-1467. Number 5680
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F13 - Commercial Policy; Protection; Promotion; Trade Negotiations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005720685