Chapter 2 - Multinational Firms and the Structure of International Trade. This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions.
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First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are located? Finally, why do firms own foreign facilities rather than simply contract with local producers or distributors?
We organize our exposition of the trade literature on multinational firms around the workhorse monopolistic competition model with constant- elasticity- of- substitution (CES) preferences. On the theoretical side, we review alternative ways to introduce multinational activity into this unifying framework, illustrating some key mechanisms emphasized in the literature. On the empirical side, we discuss the key studies and provide updated empirical results and further robustness tests using new sources of data. Copyright © 2. 01. Elsevier B. V. All rights reserved.
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: China's Growing Role in World Trade. The Stolper–Samuelson theorem is a basic theorem in Heckscher–Ohlin trade theory. It describes the relationship between relative prices of output and relative factor rewards—specifically, real wages and real returns to capital. This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD. NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers. Canada's State of Trade: Trade and Investment Update 2012. PDF version (474 KB) * VII. SPECIAL FEATURE: International Trade and Its Benefits to Canada. Seite 2 2 2. International Trade and International Capital Flows o Antras and Caballero (2009) 3. International Trade and Business Cycles o Baxter (1992). The B.E. Journal of Economic Analysis & Policy (BEJEAP) welcomes submissions that employ microeconomics to analyze issues in organizational economics, consumer behavior, and public policy.
This paper tests to what extent the gravity model is applicable to explain Korea’s bilateral trade flows and to extract implications for Korea’s trade policy. The gravity model of international trade in international economics, similar to other gravity models in social science, predicts bilateral trade flows based on the economic sizes (often using GDP measurements) and distance between two units. No. 207 july 2012 trade, income distribution and poverty in developing countries: a survey. 1. Introduction. Over the last two decades, international trade theory has undergone a steady transformation that has placed firms rather than countries or industries as the central unit of analysis.