Trade promotion can also include expanding the supply of key inputs in a country's strongest industries, via import expansion.
One notable tactic is the provision of trade intelligence to domestic enterprises in order to reduce transaction costs and provide them with a competitive advantage vis-à-vis foreign companies.
Many countries all over the world have set up special agencies, most of them in the public domain, to implement trade promotion policies and provide support services to domestic enterprises.
[3][4] The rationale for public trade promotion measures is based on the observation of market failures and the idea of creating positive externalities.
Using panel data for Chile and the USA, Alvarez (2004)[8] and Bernard and Jensen (2004),[9] respectively, find mostly insignificant firm responses to different export promotion schemes.