A formula is derived to indicate the marginal returns to nonprice promotion for a competitive industry that promotes in both the domestic and the export market and receives a subsidy for export promotion. Private returns to export promotion are an increasing function of the export promotion...

The USDA'Â’s Foreign Agricultural Service funds three types of activities to promote agricultural exports: consumer promotion, technical assistance, and trade servicing. These "instruments" are analyzed using an adaptation of Muth's model. Results indicate that consumer promotion always...

Rules are derived to indicate the optimal allocation of a fixed promotion budget between domestic and export markets when the commodity in question represents a significant portion of world trade and is protected in the domestic market by a deficiency-payment program. Optimal allocation...

Nerlove and WaughÂ’'s theory of cooperative (generic) advertising is extended to the case of traded goods. Results suggest that trade reduces the incentive to promote by enlarging the effective supply or demand elasticity facing the industry. This is especially true in the net exporter...