American Industry in International Competition: Government Policies and Corporate Strategies

Abstract

A shortened version of the introductory and concluding chapters of a volume of case studies of American industry in international competition, this article examines the contemporary debate on industrial policy, building on lessons drawn from the case studies. The authors identify several possible economic and political rationales for an industrial policy, as it is one of the instruments with which the government can respond to the competitive difficulties of individual sectors in international trade. They conclude that, in the absence of such a policy, the government will continue to respond to such difficulties with protectionist measures that thwart necessary economic adjustment and reduce our national economic well-being.