The USA in World Integration
- New Horizons in International Business series
Edited by Thomas L. Brewer and Gavin Boyd
Chapter 11: Structural statecraft
Gavin Boyd Intensifying rivalries between ﬁrms striving for larger world market shares have increasing effects on the spread of beneﬁts and costs as globalization continues. The consequences for growth and employment cause governments to adopt measures that are intended to enhance the structural competitiveness of their economies. The structural interdependencies linking their economies can be managed with advantage by administrations whose national ﬁrms achieve combinations of efﬁciencies that result in superior levels of structural competitiveness. The international economic rivalry however also involves uses of leverage over issues of market openness: large states, and groups of states, can discriminate against states with weaker bargaining power, thus in varying degrees limiting any advantages those states may derive from greater structural competitiveness. Bargaining strength based on the size of its economy enables the USA to exert very powerful leverage against the European Union, Japan and the industrializing countries. How this bargaining strength is used depends primarily on the dynamics of highly pluralistic policy processes which tend to be more understandable in public choice than in public interest perspectives. These processes make the enhancement of structural competitiveness difﬁcult, and limit the scope for measures that might be considered for that purpose.1 Hence there is an overall tendency to rely on market opening leverage against other states in the international economic rivalry. In policy statements this is justiﬁed with reference to the potential beneﬁts of general trade and investment liberalization. It is also justiﬁed with complaints that structural policies...
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