Strategic policies with foreign non-tradable input suppliers

We consider strategic government policies on the exports of final goods andon the input production when the inputs are non-tradable and produced by the foreignfirms. If the policies consist of only per-unit tax/subsidies either on the final goods oron the inputs, it is optimal for the governments to impose taxes. However, if thegovernments can impose profit taxes on input production and per-unit tax/subsidieseither on the final goods or on the inputs, it is optimal to impose per-unit subsidiesalong with a positive profit tax on the inputs...