Chapter 11- Controversies in Trade Policy

Chapter 11- Controversies in Trade Policy - Pharmaceutical...

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Chapter 11: Controversies in Trade Policy April 22, 2008 Arguments for “activist” trade policies o Usually implies government policies that actively support export industries through subsidies o Assumption that import substituting industrialization and cases against free trade used: market failure Technology and Externalities o Appropriability problem:
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Unformatted text preview: Pharmaceutical companies Copyrights, patents Externalities o Governments may want to encourage investment in technology when the externalities create a high marginal social benefit o Environmental standards rise as income rises o Should the government subsidize high technology industries? • SLIDES •...
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This note was uploaded on 05/01/2008 for the course ECON 243 taught by Professor Koopman during the Spring '08 term at Georgetown.

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