Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142546
Authors: 
Kikuchi, Toru
Year of Publication: 
2009
Series/Report no.: 
EERI Research Paper Series 14/2009
Abstract: 
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 penetration. It is shown that, as trade costs decrease, more entrepreneurs choose to provide foreign brands. However, the impact of trade liberalization (in terms of changes in profit levels) becomes smaller as more entrepreneurs switch to foreign brands.
Subjects: 
Foreign brand penetration
trade liberalization
monopolistic competition
JEL: 
F12
Document Type: 
Working Paper

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