Trade Gains via Business Market Share: U.S.-Global Posturing with Insight from Previous Manufacturing Battles

Main Article Content

Todd J. Barry


Freshly elected United States President Donald J. Trump has ushered in a new but debated era of global economic repositioning, in which trade policies, particularly regarding manufacturing, may drastically change in the form of new tariffs, or renegotiated agreements, which might be termed the Washington-Nationalist Ambivalence.  This might greatly affect the business environment for managers.  At the same time, the world is witnessing a greater divergence of economic policy between developed and emerging nations.  In light of this, do any of Mr. Trump’s ideas meet the test of economic theory, traditional or modern?  This article combines micro- and macroeconomics with an understanding of business and market share, through several related models.  Specifically, it uses concepts from orthodox trade theory as well as comprehensible evidence from the 1970s-1980s auto and manufacturing battles to propose an original concept, that under certain circumstances beyond the “optimal tariff,” tariffs in competitive industries with low import market shares are justified.  Managers might appeal these ideas to the Trump Administration.  Additionally, it proffers a new measurement called “choice purchasing power” to reconcile global trade divergences, which future research could validate, while it offers a lukewarm, hypothesized hope that the new U.S. administration will heed to such reasonable policies, and turn away from many of the flagrant misnomers made during the 2016 U.S. presidential campaign.

Article Details