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In this paper we examine the incentives for governments to recognize the standards of foreign products. In the case of non-recognition, a foreign firm must incur an additional cost to sell in the local market.
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Recent progress towards a comprehensive peace in the Middle East has led to a relaxation of the enforcement of the Arab economic boycott of Israel.This in turn has led to the entry of all the major Japanese and Korean automobile manufacturers into the Israeli market.In this paper, we examine the...
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