Purpose – The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns. Methodology/approach – It takes the work of Kikuchi et al.'s (2008) Chamberlinian–Ricardian model as its point of departure,...

Based on a many-industry Chamberlinian-Ricardian trade model with iceberg trade costs, this note examines the impact of two modes of economic integration: a reduction in trade costs, and technical standardization due to information spillover. It is shown that these two modes of economic...

The main purpose of this study is to illustrate, with a simple monopolistic competition trade model, how trade liberalization (i.e., a decline in trade costs) can affect domestic entrepreneurs’ decisions between domestic brands and foreign brands, and thus the degree of foreign brand...

The purpose of this study is to illustrate, using a simple model of monopolistic competition with multi-product firms, how trade liberalization affects the degree of foreign brand penetration. We model this in terms of the profit incentives for domestic entrepreneurs to choose to offer domestic...