An alternative to free trade or protectionism: why corporations seek strategic trade policy

Article Abstract:

Conventional theories of the political economy of trade argue that industries in import-competing businesses favor protectionism while multinationals and export-dependent corporations advocate unconditional free trade. However, many multinational industries have recently advocated "strategic" trade policies: i.e., potential closure of the domestic market if foreign markets remain closed or if foreign government subsidiaries are not reduced. This article explains why companies seek strategic trade policy. If an industry is characterized by firms with symmetric strategies, it will seek strategic trade policy; but if the industry is highly segmented, it is more likely to become protectionist. The article presents four studies of the politics of trade in semiconductors, commercial aircraft, telecommunications, and machine tools. It concludes that demands for strategic trade policy are likely to increase, with widespread implications for both firms and the U.S. government. (Reprinted by permission of the publisher.)

International trade, Economic policy, Free trade

---

Strategic use of technology

Article Abstract:

Within any given industry, some firms build competitive advantage on the basis of technology, others do not; some recognize and seize upon the strategic implications of new technology developments, others do not. Why do some firms make better strategic use of technology than others? The answer may have less to do with the management of technology than with the extent to which technological considerations play a role in the way business strategies are formulated. This article proposes a decision-making perspective that views technology as one of a number of competing options facing the corporate strategist, each ambiguous in definition and uncertain in outlook. Using this perspective, the article offers a set of propositions or tentative answers to these questions. (Reprinted by permission of the publisher.)

Finance, Technological innovations, Corporate finance

---

Cost of capital: the managerial perspective

Article Abstract:

This article examines the impact of the cost of capital on managerial decision making. Senior executives from four capital-intensive industries were interviewed. One group of executives (Group 1) argued that the cost of capital has a major impact on their ability to compete and directly constrains their investments in capital equipment and/or R&D. A second group (Group 2) expressed a roughly opposite view, arguing that the cost of capital is not one of the primary factors in their decision making. Two factors appear to account for this difference: Group 2 firms tend to be in better financial condition than Group 1, and Group 2 firms are technology leaders in their respective markets, whereas Group 1 firms are not. (Reprinted by permission of the publisher.)

Analysis, Management, Interview, Executives, Business enterprises, Capital investments

Similar abstracts:

• Abstracts: Converting to for-profit status: corporate responsiveness to radical change. Matching individual career plans and organizational career management
• Abstracts: From critical resources to corporate strategy. The strategic potential of a firm's knowledge portfolio. The importance of power in partnership relationships
• Abstracts: MCI's new marketing chief moves fast to realign management, sales strategy. AT&T expands early-retirement plan; earnings climbed 19% in third period
• Abstracts: Negotiating trust in the San Francisco hotel industry. Developing skills and pay through career ladders: lessons from Japanese and U.S. companies

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.