How firms react to a given shock may depend on the degree to which rivals are present and on whether potentially viable entrants to that market exist. A preferred supplier market presence and threat of entry lessen a nonmember country's price reaction to most-favored-nation trade liberalization...

This third Annual Bank Conference on Development in Latin America and the Caribbean (LAC) focuses on trade liberalization policy, specifically "open regionalism," a term coined to describe the fact that 1) regionalism has gone hand in hand with unilateral trade opening:statistics on tariff and...