Law Commons^™

Does Exposure To International Trade Justify Relaxed Antitrust Treatment Of Mergers, William James Adams

Northwestern Journal of International Law & Business

When industries are exposed to foreign competition, relaxation of antitrust law in general, and of antimerger law in particular, may be justified in two ways. First, it may be argued that the ability to compete with foreigners requires possession of market power. One variant of this argument stresses the desirability of market power itself. Domestic enterprises must neutralize restrictive practices abroad -- whether they are inspired by foreign governments or merely tolerated by them -- if such enterprises are to enjoy their "natural" comparative advantages. A second variant of the argument emphasizes the growth of minimum efficient scale in manufacturing, …