The article explores how government trade policies and market structures affect competition between firms. They use a model with two firms that can be substitutes or complements, and governments choose to provide subsidies or not. The firms then decide on output levels either sequentially or simultaneously. The study shows that trade policies can change how firms prefer to compete, and different market structures can influence government preferences on free trade or subsidies. When one firm can lead, the type of competition can vary depending on whether firms compete in quantities or prices.