Erschienen in:IMF Working Paper, Vol. , pp. 1-25, 1998
Umfang:
1 Online-Ressource (25 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.882589
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 1998 erstellt
Beschreibung:
This paper uses the three-country duopoly model to examine the effects of lowered trade barriers when a new entrant joins a trading bloc. There are two firms a small-country firm and a large-country firm within the bloc and three markets two within and one (new entrant`s) outside the bloc. The analysis generally shows greater gains for the small-country than for the large-country firm. The small-country firm will export more to the external country than the large-country firm. But if tariffs decline, the export share of the large-country firm will increase relative to the small-country firm`s, though profits will improve more for the latter