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Imports A Substitute for Antitrust?
I recall a suggestion here that imports can supply the needed
competition and nullify domestic monopoly, thus bringing competitive prices
to consumers--and thereby obviating the need for a domestic antimonopoly policy.
First, only some 15% of U.S. industry is subject to import competition.
And it carries some high costs: (1) The JOBS are transferred to
the exporting countries; (2) the profits go there; and (3) the
technology--and its new developments --remains in those exporting countries.
Tolerating monopoly in one's home industries via a lax or
nonexistent antitrust policy--and then 'buying competition' from abroad--is
one of the more costly policy mistakes for virtually any country. There's
still no free lunch.
Charles Mueller, Editor
ANTITRUST LAW & ECONOMICS REVIEW