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Abstract
We present a new model of multi-product firms (MPFs) and flexible manufacturing, and explore its implications in partial and general oligopolistic equilibrium. Globalization affects the scale and scope (or intensive margin and intra-firm extensive margin) of MPFs through a competition effect and a demand effect. The model highlights a new source of gains from trade: productivity increases as firms become \" leaner and meaner\" , concentrating on their core competence; but also a new source of losses from trade: product variety may fall. Our results also hold under free entry, which allows in addition for adjustment along the traditional inter-firm extensive margin.
Item Type: | Journal article |
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Faculties: | Economics Economics > Chairs > Seminar for International Trade Theory and Trade Policy |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
Item ID: | 20525 |
Date Deposited: | 15. Apr 2014, 09:00 |
Last Modified: | 04. Nov 2020, 13:01 |
Available Versions of this Item
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Multi-product firms and flexible manufacturing in the global economy. (deposited 15. Apr 2014, 09:00)
- Multi-product firms and flexible manufacturing in the global economy. (deposited 15. Apr 2014, 09:00) [Currently Displayed]