In This Review

Industrial Policy as an International Issue
Industrial Policy as an International Issue
By William Diebold, Jr.
McGraw-Hill, 1980, 305 pp

Nations affect each other's well-being not only by the traditional triumvirate of trade, investment and monetary policy but also by a host of domestic "industrial" policies whose impact abroad is unintentional. As recognition builds of the pervasiveness of each society's effect on others by means of its domestic economic initiatives-a primary purpose and accomplishment of Mr. Diebold's important and sobering book-one is daunted by the difficulty of achieving relief of even those effects of industrial policy which are clearly in nobody's interest. The book examines possible avenues of agreement-by industrial sector (e.g., steel or textiles), or international planning for specific markets such as automobiles. By impressing on the reader the huge capacity for mischief inherent in nations failing to coordinate some internal economic policies, the author demonstrates clearly the importance of the choice between, on the one hand, common action, and on the other, costly nationalistic competition for markets, growth, labor and capital.