A Study in the Effect of Foreign Rival Export Subsidy on Iran Crude Steel Export in Stacklberg Market and Strategic Trade Policy

Strategic trade policy is studying trade policy in oligopoly market. In this market, government strategic intervention (for example: tariff or subsidy) influence on profit and export of domestic and foreign firms and their market share. This paper considered the theory in stackelberg market. We studied effect of export subsidy for domestic firms on profit and export of foreign firms (and inverse). We made Strategic trade policy model in stackelberg market and examine. Results of this model showed: 1- Since Iran is leader government, export subsidy is paid to foreign rival firms can not influence on Iran cure steel export but it influence on Iran firms profit. 2- Because foreign rival is follower government, export subsidy of Iran government to its firm, influence on profit and export foreign rival firm.