A Study On Trade Policies And Competitive Advantage Of Firms

Written by: SK Akshaay, BB.A LL.B (Hons), School of Excellence in Law, Tamil Nadu Dr Ambedkar Law University, Chennai

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Dr. M.D. Chinnu, Assistant Professor, Dept. of Economics, School of Excellence in Law, Tamil Nadu Dr Ambedkar Law University, Chennai

Published on: 8th  April 2026

Abstract

This study explores the influence of trade policies on the competitive advantage of firms in domestic and international markets. It examines how tariffs, subsidies, and trade liberalization affect cost structures, productivity, and market access. The paper analyzes the strategic responses of firms to policy-induced opportunities and constraints. Favourable trade policies are found to enhance efficiency, innovation, and export performance. In contrast, restrictive policies may increase input costs and limit competitiveness. The study emphasizes managerial decision-making under changing trade regimes. An analytical approach integrating economic theory and empirical insights is adopted. The findings highlight the importance of adaptive strategies for sustaining long-term competitiveness.

Key Words: Trade Policies, Competitive Advantage, Firm Strategy, Tariffs, Trade Liberalisation, Managerial Economics, Global Competitiveness

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