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This paper investigates the relationship between entry, demand, and dumping in the context of a two country Ricardian … model of international trade. Dumping - the export of goods at a price below average cost - can arise in the free trade … dumped good in equilibrium. Interestingly, and in contrast to models of dumping in cyclical downturns, dumping will not occur …
Persistent link: https://www.econbiz.de/10012475183
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When trade involves differentiated products, preferential ties to a group settled abroad facilitate an exporter's entry into the foreign market by providing information and access to distribution channels. This contrasts with the difficulties experienced by an unattached producer unfamiliar with...
Persistent link: https://www.econbiz.de/10012472628
This paper analyses the effects of tariff reforms on welfare and market access in a competitive small open economy that is characterised by involuntary unemployment due to non-market clearing wages that are fixed either in terms of the numeraire or in real terms. We show that recent...
Persistent link: https://www.econbiz.de/10012729155
In this paper we show that price equalization alone is not sufficient to establish that there are no barriers to international trade. There are many barrier combinations that deliver price equalization, but each combination implies a different volume of trade. Therefore, in order to make...
Persistent link: https://www.econbiz.de/10013036990
In this article, the authors demonstrate the possibility of price equalization in a two-country world with barriers to international trade. For price equalization to occur when the countries are asymmetric, the country with higher productivity must also be the one with the lower trade barrier. A...
Persistent link: https://www.econbiz.de/10012903474
In this paper we show that price equalization alone is not sufficient to determine the barriers to international trade. There are many barrier combinations that deliver price equalization, but each combination implies a different volume of trade. We demonstrate this first theoretically in a...
Persistent link: https://www.econbiz.de/10013086971
We propose a stylized monopolistic competition model of international trade where firms differ with respect to the expected economic lifetime of their innovations. Upon entry, they receive a commonly observed signal which is updated over time. Jointly with partial irreversibility of investment,...
Persistent link: https://www.econbiz.de/10013104159
Persistent link: https://www.econbiz.de/10013347732
When trade involves differentiated products, preferential ties to a group settled abroad facilitate an exporter's entry into the foreign market by providing information and access to distribution channels. This contrasts with the difficulties experienced by an unattached producer unfamiliar with...
Persistent link: https://www.econbiz.de/10013226069