ABSTRACT
For a variety of reasons, the international division of labor has been tampered with through trade policy measures. Historic periods of protectionism were followed by epochs of free trade and vice versa (section 14.1). The most important trade policy instruments are surveyed in section 14.2. A whole arsenal of arguments for taking trade policy measures have been put forward. A number of arguments have a defensive orientation (section 14.3), others are rather aggressive (section 14.4), and yet other arguments concern retaliation (section 14.5) and the demand for a level playing field in competition (section 14.6). These arguments are critically reviewed. The reasons for a free international division of labor are summarized (section 14.7). Finally, the most prominent globalization fears are discussed (section 14.8).
