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. The second chapter provides a theory of offshoring under imitation risk that explains optimal dynamic adjustments of firms … Faktorausstattung zweier Länder basiert. Das zweite Kapitel liefert eine Theorie zu Offshoring unter Imitationsrisiko. Diese Theorie …
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. The second chapter provides a theory of offshoring under imitation risk that explains optimal dynamic adjustments of firms …
Persistent link: https://www.econbiz.de/10010395778
We examine the causal effect of tariff uncertainty on firms’ cost of debt. Our tests exploit a unique trade policy that reduces tariff uncertainty on Chinese imports without affecting the actual tariff rate: the U.S.-China Permanent Normal Trade Relations (PNTR). We find a significant drop in...
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Due to the U.S.-China trade war, multinational firms (MNFs) may develop new contract manufacturers (CMs) outside China to evade the high tariff on Chinese exports to the U.S. market. We investigate a sourcing game where competing MNFs decide whether to develop new CMs in a new region to overcome...
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