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Discriminatory Consequences of Non-discriminatory Standards

Discriminatory Consequences of Non-discriminatory Standards

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This paper shows that environmental, labour and other standards can be effective strategic policy instruments even when they are strictly non-discriminatory. This is because standards can be set which the foreign producer optimally chooses not to meet, allowing the domestic producer to monopolize the standardized segment of the market. Thus, it is imposition of unilaterally determined standards-which could impact negatively on trading partners even when they are non-discriminatory-rather than internationally negotiated standards.

Ⅰ.Introduction

Ⅱ.The Basic Model

Ⅲ.Standards and Market Structure Equilibria

Ⅳ.Implications of Alternative Assumptions

Ⅴ.Conclusions and Extensions

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