Question
Consider a model of trade in intermediate inputs. Home is exporting R&D and importing components. Now consider a scenario of fall in the relative price
Consider a model of trade in intermediate inputs. Home is exporting R&D and importing components. Now consider a scenario of fall in the relative price of R&D. a) Will Home be better off or worse off compared to the initial outsourcing equilibrium? b) Will Home be better off or worse off compared to autarky?
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Econometric Analysis Of Cross Section And Panel Data
Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
