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In times of increasing oil prices and a weak dollar, European companies that focus their business on the US market may find themselves in a weak position. While many businesses can hedge this kind of risk by relocating production to the US, or employing financial remedies, these strategies may...
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of a new class of trade models: the New New Trade Theory which accounts for firm heterogeneity and market entry costs …
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difference between any two tariff rates exactly equals 100% of the difference between the foreign firms' marginal costs, the home …
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amenities. The model assumes that the costs of relocating to a new city are zero. The results hold in the presence of moving … costs for the marginal migrant. This paper extends the Roback model to allow for moving costs which vary among a city …
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