Firms in Trade and Trade Politics

Abstract

We survey the literature on firms as primary actors in trade politics. In contrast with prevailing approaches, firm-centered models predict that trade internally divides industries and that larger firms are the strongest advocates for globalization. This new preference map alters extant predictions about the dynamics of interest group contestation over trade and suggests revised accounts for how political organization and institutions contribute to an open international order. We also explore the potential for new insights into the operation of the global trade regime, the politics of foreign investment, immigration and capital movements, and exchange rates. Poli-tical activities undertaken by firms are important areas for further research in international political economy: Their economic engagements directly affect the movement of goods, services, capital, and people across the globe.