This paper focuses on an unexamined area of trade, the behaviour of heterogeneous intermediate suppliers facing final producers of different ability and pursuing different strategies. We develop a theoretical model to analyse the choice of an intermediate supplier between selling to domestic...

This paper develops and analyzes a model of international trade comprising multiproduct firms that can produce a range of product varieties distinguished by quality. First, it analyses the within-firm distribution of product quality and argues that firms export decisions are sensitive to their...

This paper develops and analyzes a model of international trade comprising multiproduct firms that can produce a range of product varieties distinguished by quality. First, it analyses the within-firm distribution of product quality and argues that firms’ export decisions are sensitive to...