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Trade Subsidy - Trade Protectionism

Book Depository Livres avec livraison gratuite. Goodreads Avis et recommandations. International trade rules, which are the result of painstaking negotiations among diverse interests — including, most notably, corporations and their lobbies, cannot be expected to discriminate reliably between these two sets of circumstances.

Countries pursuing harmful policies that blunt their development prospects are doing the greatest damage to themselves. When domestic strategies go wrong, other countries may be hurt; but it is the home economy that pays the steepest price — which is incentive enough for governments not to pursue the wrong kind of policies.

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Governments that worry about the transfer of critical technological know-how to foreigners are, in turn, free to enact rules prohibiting their firms from investing abroad or restricting foreign takeovers at home. Many liberal commentators in the US think Trump is right to go after China.

Their objection is to his aggressive, unilateralist methods. It shows little interest in policies that would improve global trade for all. Republication forbidden.

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Article Submission. Legal Disclosure. Privacy Policy. Dani Rodrik. Join our growing community newsletter! Selective protection, credit subsidies, state-owned enterprises, domestic-content rules, and technology-transfer requirements have all played a role in making China the manufacturing powerhouse that it is. Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

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US, China and the limits of free trade - Nikkei Asian Review

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