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This document compares strategic trade theory and neoclassical trade theory. It discusses how their differing assumptions lead to different views of international trade. Neoclassical trade theory assumes perfect competition and comparative advantage leads to a single market equilibrium. Strategic trade theory assumes imperfect competition and oligopolistic markets can have multiple equilibria influenced by firm strategy. While neoclassical theory sees governments as neutral, strategic trade theory views gov

Author

Mohamed Abdisalan

Language

EN