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In this paper we show that price equalization alone is not sufficient to determine the barriers to international trade. There are many barrier combinations that deliver price equalization, but each combination implies a different volume of trade. We demonstrate this first theoretically in a...
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During the last decade, international trade has witnessed a dramatic transition from a field dominated by theory to one … dominated by empirics linked to theory. In this volume, Professor Bernhofen has selected an impressive range of critical papers …, Edward E. Leamer and Leo Sveikauskas (1987), 'Multicountry, Multifactor Tests of the Factor Abundance Theory', American …
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We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the quot;trade creationquot; effect and the quot;exploitation...
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The relationship between trade and material flows is examined by viewing theglobal economy from the perspective of international material-product chains(MPC). The international MPC covers the complete lifecycle of a material or aproduct in two or more regions, including extraction, production,...
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