lec11-eco101-10

lec11-eco101-10 - InternationalTrade Lecture11 c...

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Unformatted text preview: InternationalTrade Lecture11 c Marc-AndreasMuendler UniversityofCalifornia,SanDiego November2,2010 11.InternationalIntegrationofProduction Econ101, c M.Muendler InternationalIntegrationofProduction InternationalIntegrationofProduction:Tradeacrossbordersbutwith- infirmsorcontractuallylinkedgroupsoffirms InternationalIntegrationofProductioncouldalsobecalledInterna- tionalDisintegrationofProduction Slicingthevaluechain (Krugman1996) Verticalspecialization (Hummels,Rapaport,Yi1997) Cross-borderoutsourcing(acrossfirmboundaries), offshoring(withinoracrossfirmboundaries) 11.InternationalIntegrationofProduction Econ101, c M.Muendler InternationalIntegrationofProduction UNCTAD(2002): WorldInvestmentReport Multinationalenterprises,MNE(Transnationalcorporations,TNC) ShareofValueAddedinWorldGDP 1990 2000 Top10multinationalenterprises 1.0 0.9 Top20multinationalenterprises 1.8 1.5 Top50multinationalenterprises 2.9 2.8 Top100multinationalenterprises 3.5 4.3 UNCTAD(2002) Roughlyonethirdofworldtrademightbeintra-firmtrade 43percentofUSimportswithinmultinationalfirms (Zeile1997) 11.InternationalIntegrationofProduction Econ101, c M.Muendler WorldFDIOutflows,MerchandizeExportsandProduction I n d e x ( 1 9 8 5 = 1 ) Year World FDI outflows World Merchandise Exports World Merchandise Production 1985 1988 1990 1992 1994 1996 1998 2000 2002 1 2 4 8 12 16 20 Sources :UNCTADandWTO,November2003 11.InternationalIntegrationofProduction Econ101, c M.Muendler U.S.TradebyMultinationalEnterprises Source :Bernard,Jensen&Schott(2009),U.S.census1993and2000. Note : Relatedparty tradeistradebetweenU.S.firmsandtheirforeignsubsidiariesaswellastrade betweenU.S.subsidiariesofforeignfirmsandtheirforeignaffiliates.Forexports(imports),firms arerelatedifeitherpartyowns,directlyorindirectly,10(6)percentormoreoftheotherparty. 11.InternationalIntegrationofProduction Econ101, c M.Muendler ExportsbyFirmType Source :Bernard,Jensen&Schott(2009),U.S.census1993and2000. Note : Relatedparty tradeistradebetweenU.S.firmsandtheirforeignsubsidiariesaswellastrade betweenU.S.subsidiariesofforeignfirmsandtheirforeignaffiliates.Forexports(imports),firms arerelatedifeitherpartyowns,directlyorindirectly,10(6)percentormoreoftheotherparty. 11.InternationalIntegrationofProduction Econ101, c M.Muendler OutputMarketSegmentation PriceDiscrimination:Thepracticeofchargingdifferentpricestocon- sumersindifferentmarketsegments Anti-competitivepredatorypricing,orcompetitiveresponse? Dumping:Pricediscriminationininternationalmarkets Whenexported,goodssoldatlowerpricethanindomesticmarket Twoconditionsneedtobesatisfiedfordumpingtobepossible Industriesmustbeimperfectlycompetitive Marketsmustbesegmented(noarbitragepossible) 11.InternationalIntegrationofProduction Econ101, c M.Muendler ExportDumpingbyaDomesticMonopolist Apriceof P * prevailsoncompetitiveinternationalmarkets Aprofit-maximizingmonopolistwillselloninternationalmarketsat...
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lec11-eco101-10 - InternationalTrade Lecture11 c...

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