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This paper analyzes the financing terms that support international trade and sheds light on how and why these arrangements affect trade. Using detailed transaction level data from a U.S. based exporter of frozen and refrigerated food products, primarily poultry, it begins by describing broad...
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In recent decades, advances in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages. A key decision facing firms worldwide is the extent of control to exert...
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The classical Heckscher-Ohlin-Mundell paradigm states that trade and capital mobility are substitutes, in the sense that trade integration reduces the incentives for capital to flow to capital-scarce countries. In this paper we show that in a world with heterogeneous financial development, the...
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The rise of offshoring of intermediate inputs raises important questions for commercial policy. Do the distinguishing … features of offshoring introduce novel reasons for trade policy intervention? Does offshoring create new problems of global … perform in a world where offshoring is prevalent? In this paper we provide answers to these questions, and thereby initiate …
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