Sophisticated arguments for Activist Trade policy There are two kinds of market failure that seem to be present and relevant to the trade policies of advanced countries Technological externalities The presence of monopoly profits in highly concentrated oligopolistic industries Copyright C 2003 Pearson Education, Inc Slide 11-4Copyright © 2003 Pearson Education, Inc. Slide 11-4 Sophisticated Arguments for Activist Trade Policy ▪ There are two kinds of market failure that seem to be present and relevant to the trade policies of advanced countries: • Technological externalities • The presence of monopoly profits in highly concentrated oligopolistic industries