Question:Why do governments protect their domestic firms? Describe the main reasons for trade protection and assess whether any of these enhance economic welfare.
See the Extended Reading List for relevant references, and also consult the following:
Brewer, T. L. (1993). Government policies, market imperfections, and foreign direct investment. Journal of International Business Studies, 24(1): 101-120.
Dunning, J. H. (1988). The eclectic paradigm of international production: a restatement and some possible extensions. Journal of International Business Studies, 19(1): 1-31.
Hill, C.W.L. (2013). International business: competing in the global marketplace. Ninth edition. New York: McGraw-Hill. Chapters 6 & 7.
Krugman, P. R. (1987). Is free trade passé?. The Journal of Economic Perspectives, 1(2): 131-144.
Lenway, S. A., & Murtha, T. P. (1994). The state as strategist in international business research. Journal of International Business Studies, 25(3): 513-535.
Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review, 68(2): 73-93.
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