search query: @journal_id 67 / total: 829
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| Author: | Chen, Y. Ishikawa, J. Yu, Z. |
| Title: | Trade liberalization and strategic outsourcing |
| Journal: | Journal of International Economics
2004 : JUL, VOL. 63:2, p. 419-436 |
| Index terms: | Markets Competition Trade Liberalization Outsourcing Strategy Oligopoly Models |
| Language: | eng |
| Abstract: | The paper develops a model of strategic (hereafter as: str.) outsourcing (here as: outs.) With trade liberalization (here as: tr-lib.) in the intermediate-product market, a domestic firm (here as: d-firm.) may choose to purchase a key intermediate good (here as: int-good./int-goods.) from a more efficient foreign producer, who also competes with the d-firm. for a final good. This has a str. effect on competition. Unlike the outs. motivated by cost saving, the str. outs. has a collusive effect that could raise the prices of both int. and final goods. Tr-lib. in the int-good. market has a very different effect compared with tr-lib. in the final-good market. |
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