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Industrial Policy: Location, Technology, Multinational Firms, Competition, and Integration of Product Markets (Main Paper, Working Group C)

In: Economic Integration: Worldwide, Regional, Sectoral

Author

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  • Pierre Uri

Abstract

Integration does not rest on the assumption that the mere abolition of governmental barriers can create a perfect market. Price equalisation can be blocked so long as there are monopolies with powers of discrimination. Such monopolistic practices can be curbed only by governmental action. It follows that integration is possible only among countries whose governments can agree on common rules and common procedures of decision making. There may be differences of degree, as exemplified by the institutions of the EEC and the CMEA consultations; under looser arrangements, GATT has its own machinery of negotiation and arbitration for traiff reductions, and economic co-operation between East and West is framed by general intergovernmental agreements.

Suggested Citation

  • Pierre Uri, 1976. "Industrial Policy: Location, Technology, Multinational Firms, Competition, and Integration of Product Markets (Main Paper, Working Group C)," International Economic Association Series, in: Fritz Machlup (ed.), Economic Integration: Worldwide, Regional, Sectoral, chapter 6, pages 140-162, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-02571-8_7
    DOI: 10.1007/978-1-349-02571-8_7
    as

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