The article explores how commercial policies impact a small economy with imperfect competition. By using a model that combines savings, capital accumulation, and monopolistic competition, the researchers found that reducing tariffs can boost the economy by improving production efficiency and introducing new products. Even small export subsidies can pay for themselves. The benefits are greater under monopolistic competition compared to more competitive markets. While all generations benefit from the efficiency gains, some benefit more than others. Additionally, there is a significant overshooting in the economy's net asset position due to how savings are distributed over a person's lifetime.