ABSTRACT
An emphasis on absolute shifts in output or employment is less appropriate when the subject of discussion is international in scope. Any deterioration in an industry’s relative international standing is more likely to bring a response from policy-makers than if the industry were to decline in relation to other domestic industries. Public policies in support of a particular industry (e.g. import restrictions, favourable tax treatment, a relaxation of anti-trust laws or other methods) are more easily justified as a response to foreign competition than to competition between domestic firms.
