ABSTRACT
Microeconomic policy should be closely harmonized with foreign economic policy. A conservative industrial policy manifests itself in the protection of production against competition, by subsidizing this production or by preventing the expansion of foreign products. Under free market conditions, microeconomic policy is of marginal significance as it is treated as inconsistent with the principles of the system and infringing the logics of its functioning. Technological policy consists of the state's impact on the directions and rate of technological progress, resulting in diversification of this progress, which implies that it is faster in some sectors and slower in others. The concept of para-tariff instruments of foreign economic policy refers to restrictions on foreign trade which are not customs duties but produce the same effects as customs duties. The effect of trade creation expresses itself in the growth of the volume of trade among countries that abolished customs protection in mutual trade.
