INTERNATIONAL TRADE AND COMPETITION IN INTEGRATED MARKETS
Home Appliance Industry in Turkey
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INTERNATIONAL TRADE AND COMPETITION IN INTEGRATED MARKETS The traditional trade theory argues that if countries export the products they have comparative advantage in production of, both of the countries gain from trade since their welfare increase through the trade. The theory basically based on the assumptions of perfectly competitive markets. However, the number of analyses have been shown that most of the countries trade similar products and a large part of markets have features of imperfect competition. The new trade theory argues that the strategic policies implemented in imperfectly com...
INTERNATIONAL TRADE AND COMPETITION IN INTEGRATED MARKETS The traditional trade theory argues that if countries export the products they have comparative advantage in production of, both of the countries gain from trade since their welfare increase through the trade. The theory basically based on the assumptions of perfectly competitive markets. However, the number of analyses have been shown that most of the countries trade similar products and a large part of markets have features of imperfect competition. The new trade theory argues that the strategic policies implemented in imperfectly competitive markets may create more profits than that will be implemented in perfectly competitive markets. The governments may support strategic policies based on the game theory in the imperfectly competitive markets. The supported firms and industries may be more successful and can shift the extraordinary profits exist in foreign markets. On the other hand, the removal of tariffs in those imperfectly competitive markets may provide more competitive structure in domestic market and would discipline the extraordinary profits. This book analyses home appliance industry in Turkey, specifically.
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