Trade Policies and Outsourcing for Market Dominance

• 영문명: Trade Policies and Outsourcing for Market Dominance
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Yao-Tung Chen
• 간행물 정보: 『Journal of Economic Integration』제22권 제2호, 382~396쪽, 전체 15쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2007.06.30

영문 초록

This paper attempts to analyze the effect of trade policies on the prices of both final and intermediate goods, when outsourcing part of production is a means used to obtain the market dominance in the host country. The market dominance could be granted by the host country to a foreign firm as a reward for its transferring of technology through outsourcing. It is found that when the subsidy by the host country on the production of intermediate inputs is substantial and if the demand curve is concave, a reduction in tariff on the final goods would lead to a rise in the price of both the final and intermediate goods. Consequently, this produces an anti-competitive result.

목차

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Analysis of Non-outsourcing Equilibrium

Ⅳ. Analysis of Outsourcing Equilibrium

Ⅴ. Conclusions

키워드

Outsourcing Cournot duopoly Market dominance