We explore the impact of vertical specialization - trade in goods across multiple stages of production - on the relationship between trade and international business cycle synchronization. We develop a model in which the degree of vertical specialization is endogenously determined by comparative...

We incorporate learning in a monopolistically competitive model of trade with heterogeneous firms. Exporting firms face uncertainty about the demand their product faces in a given market and decide how much marketing to invest in. The incorporation of marketing in the model is essential because...