Preclusive purchasing

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Preclusive purchasing shifts the demand curve (D1 becomes D2) thus increasing price of the good for other potential purchasers - other belligerents
Preclusive purchasing shifts the demand curve (D1 becomes D2) thus increasing price of the good for other potential purchasers - other belligerents

Preclusive purchasing (also known as Preclusive buying and Preemptive buying) is an economic warfare tactic where one belligerent in a conflict purchases materiél and operations from neutral countries not for domestic needs, but in order to deprive other belligerents their use. The tactic was pioneered by the French in World War I[1].

Preclusive purchasing drives up the price by shifting the demand curve out.

Preclusive purchasing was used by the British during World War II in order to deny Nazi Germany access to Spanish Wolframite.[2]; in the period prior to the Attack on Pearl Harbor while the United States was officially neutral, the United States began to preclusively purchase Chilean copper[3] and Brazilian manganese, rubber, industrial diamonds, quartz crystal, and mica.[4]

[edit] References

  1. ^ Majorie M. Farrar. Preclusive Purchases: Politics and Economic Warfare in France During the First World War.
  2. ^ Gerhard Weinberg. A World At Arms, 396.
  3. ^ Jonathan G. Utley Going to War with Japan, 1937-1941, 122
  4. ^ Time Magazine, Economic Warfare in Brazil. June 30, 1941


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