ABSTRACT
In this chapter, we first attempt to provide a sketch of the general empirical magnitude of trade-induced dislocations relative to the many other types of dislocations that modern countries confront. We then describe three kinds of policy perspectives-economic, ethical and political-from which the case for government intevention to mitigate these dislocations can be evaluated. We go on to describe the major classes of policy instruments available to a government contemplating intervention: trade restrictions, industrial subsidies, structural policy responses, labour adjustment policies and macro-economic policies. In each case, we evaluate the central characteristics of each policy instrument against the policy perspectives described and identify convergences and divergences between these perspectives.
