Describes Strategic Trade Theory as one in which economies or industries are in direct competition. Examines the US/Japan Semiconductor wars of 1987-97 as a case study.
Written in 1997; 1,350 words; 4 sources; $ 47.95
From the Paper:
" Strategic Trade Theory and its Application to the
Japanese-United States Semiconductor Battles
The Theory Defined
Strategic Trade Theory, as it is defined by Robert E. Kennedy (1996) is a new way of analyzing the trade relationships between two countries which in effect turns against some of the traditional theories of comparative advantages. Kennedy states: "The theory of comparative advantage is one of the most widely accepted economic principles among economists. The theory, as well as substantial historical evidence, suggests that free trade raises national income, while government intervention in trade relations generally lowers a nation's wealth" (Kennedy, 1996, 1).
But. argues Kennedy, the comparative advantage theory does.."
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