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The aim of this paper is to bring economics-based finance research more into the focus of international business theory. On the basis of an analytical model that introduces financial constraints into incomplete contracting in an international vertical trade relationship, we propose an integrated...
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Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and medium-sized firms...
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decisions, when the removal either of trade barriers or of restrictions on capital outflows/inflows (globalization) allows them … yields the relocation of the whole industry, autarchy is strictly better, in welfare terms, than globalization. It is only … when relocation is a dominant strategy for one (and only one) of the firms, that globalization may be unambiguously welfare …
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