The business literature suggests that exporters either use trade intermediaries or own foreign sales representations …. Standard trade models are silent about this choice. We develop a model where producers differ with respect to competitive … advantage and where trade intermediaries arise endogenously. Intermediaries allow producers to access a foreign market at lower …

activities of German multinationals. Proximity-concentration theory which we derive our model from shows that firms face a trade …. Firms facing this trade-off choose between export and foreign production according to their expected profits. The model is …-concentration trade-off. In particular, market size and distance affect positively the probability of foreign production whereas fixed …