Oberhofer, Harald; Pfaffermayr, Michael - 2007
markets and participate in the global economy.
The more traditional mode is to ship (export) the produced goods to foreign … transportation
costs, the latter including trade costs. The FDI (export) strategy causes
higher (lower) fixed costs but lower (higher … productive firms have to use the export strategy and
accept higher variable costs triggered by the necessity of trade. Hence, the …