The tension between the free-market philosophy and mercantilism
(e.g., an industrial policy) has been longstanding. I contend that the
philosophy of international business (or international economics) is flawed terms
of how far comparative advantage is applied, even at the expense of full
employment at the city or country level. The case of Carrier in Indiana points
to the legitimacy of government intervention even at the expense of comparative
advantage.
The full essay is at "Modern Day Mercantilism."