| Abstract : | The purpose of this dissertation is a review of the literature that refers to strategic trade policy. It has two chapters. The first chapter includes imperfectly competitive models where the goods that are traded are homogeneous. The main characteristic of these models is that the number of the firms in the world market is small, and because there are economies of scale we have the profit-shifting or rent-extracting effect. The second chapter refers to trade among differentiated goods. The economies of scale now appear because the consumers want to consume many different varieties of products instead of homogeneous products. Under these circumstances there is trade between identical countries, or, in other words, we have intra-industry trade.
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