Implementing Results-Oriented Trade Policies: The Case of the Us-Japanese Auto Parts Dispute
58 Pages Posted: 7 Sep 2000 Last revised: 3 Oct 2010
Date Written: July 1996
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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