Preclusive purchasing

Preclusive purchasing

Preclusive purchasing (also known as Preclusive buying and Preemptive buying) is an economic warfare tactic where one belligerent in a conflict purchases matériel 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 [Majorie M. Farrar. [http://links.jstor.org/sici?sici=0013-0117(1973)2%3A26%3A1%3C117%3APPPAEW%3E2.0.CO%3B2-3 Preclusive Purchases: Politics and Economic Warfare in France During the First World War.] ] .

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. [Gerhard Weinberg. A World At Arms, 396.] ; 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 [Jonathan G. Utley [http://books.google.com/books?id=zCZj934XUK8C&pg=PA122&lpg=PA122&dq=preclusive+purchasing&source=web&ots=x9ccrB4Ilx&sig=WAf0Pvln7QRM-SNdBVSo3aOYs-g&hl=en Going to War with Japan, 1937-1941] , 122] and Brazilian manganese, rubber, industrial diamonds, quartz crystal, and mica. [ Time Magazine, [http://www.time.com/time/magazine/article/0,9171,851269,00.html?promoid=googlep Economic Warfare in Brazil] . June 30, 1941]

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