Industrial policy and international trade (shaping comparative advantage)
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Abstract
This article analyses industrial policy and its impact on international trade. First, it devotes attention to the main reasons for the introduction of an industrial policy a decade ago in the developed countries. Second, it presents various definitions of industrial policy. The next chapter considers the implementation of industrial policy in the selected countries. Finally, the article recommends the industrial policies of Japan and W. Germany as examples of successful circumventing numerous pitfalls which lie on the way which shapes a country's comparative advantage.
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