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presence of domestic competition can lead to more (less) reshoring. Although higher tariffs hurt the global firm's profit, the … quantity, and production decisions in the presence of domestic market competition and uncertainties around market demand and … imposed tariffs at both the raw-material (RM) and finished-goods (FG) level. We show that an increase in the average RM tariff …
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potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition … that the agents face. We study a tournament model and we find that more intense competition, measured by the number of …
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potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition … that the agents face. We study a tournament model and we find that more intense competition, measured by the number of …
Persistent link: https://www.econbiz.de/10013438624
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In China, growth will gradually moderate, reflecting intensified policy efforts to address financial vulnerabilities and structural constraints, and place the economy on a more sustainable growth path. In the rest of the region, growth will pick up, as exports firm in line with strengthening...
Persistent link: https://www.econbiz.de/10011528169
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...
Persistent link: https://www.econbiz.de/10013292528