Competitive Economic Development of The Republic of Moldova

Perchinschi Natalia(1*), Gribincea Alexandr(2),


(1) IEFS, Moldova
(2) ULIM,Moldova
(*) Corresponding Author

Abstract

With this general framework in mind, this section has explained through various examples the circumstances in which economic theory would justify a temporary increase in trade barriers – even above the level of commitments in a trade agreement. These circumstances include when an import surge provides an argument for an increase in trade barriers as well as when a change in demand or supply or in policy leads to a sharp contraction for a particular sector and this, in turn, has a negative externality (like in the case of the one-company town). Another argument for trade policy intervention is when something alters the degree of competition in the market – for example, if a company indulges in predatory dumping. Other circumstances include developing countries providing support to infant industry, action to address balance of payment crises, and responding to a sharp increase in the world price of a product. In all these cases, the adoption of restrictive trade policy can be justified as a second-best option.

Keywords

economic development, economic crisis, competitive, innovative policy, strategy innovation

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References

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DOI: http://dx.doi.org/10.15294/ibarj.v2i1.38

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