This paper addresses the interplay between unilateralism and multilateralism. I first describe theirrespective stylized facts. I next present a simple, multi-country model with high initial tariffbarriers and with the features that have always been of paramount concern to policymakers,...

We reconsider the economics of protection with an industry subject to increasing returns. Under strong comparative disadvantage in one country, any tariff-distorted equilibrium in which both countries produce the commodity must be unstable. In general, under strong comparative disadvantage, the...

This paper offers a selective, interpretative survey of the literature on the political economy of international trade policy. Unilateral trade policy and multilateral trade agreements are covered, but preferential trading arrangements are not. Much of the literature is characterized either by a...