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the winner firm manufacturing in the North. The other is outsourcing-targeted R&D race, which culminates in the winner … firm manufacturing in the South. In equilibrium, manufacturing costs are lower in the South, but engaging in outsourcing … globalization by considering a reduction in the resource-requirement in outsourcing-targeted R&D (triggered by reduced communication …
Persistent link: https://www.econbiz.de/10005489467
We study how the level of trade costs and the intensity of competition can explain the existence of two-way, one-way or no trade within the same industry. As trade costs decrease from very high to very low values, the economy moves from autarky to a regime of two-way trade, through a regime of...
Persistent link: https://www.econbiz.de/10008876405