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| Author: | Greaney, T.M. |
| Title: | Reverse importing and asymmetric trade and FDI: a networks explanation |
| Journal: | Journal of International Economics
2003 : DEC, VOL. 61:2, p. 453-465 |
| Index terms: | Foreign investment Imports Intra-industry trade Multinational companies Networks |
| Language: | eng |
| Abstract: | The impact of business and social networks are considered on international trade and FDI. It is proposed that differences in the strength of network effects across countries can produce asymmetric trade and investment flows that may lead to trade friction. A company from a country with strong network effects has a cost advantage in selling to buyers from its own country. This advantage results in lower inward FDI, lower total imports but larger volumes of reverse imports into the country with strong network effects. |
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