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dc.contributor.authorAndriani, Pierpaoloen_US
dc.contributor.authorHerrmann-Pillath, Carstenen_US
dc.description.abstractRecent research into international trade has highlighted the role of trade costs in determining the geography of trade. We propose that the notion of comparative advantage has to be expanded to include different capacities to transact and the pertinent factor endowments (organizational and social capital). In a 'transactional regime', sets of transaction-enabling tasks (TETs) are arranged to overcome a given pattern of trade resistances. We argue that transactional regimes impact the flows and contents of information that guide the decision making of producers and therefore also shape the resulting international division of labour. Transactional regimes can be classified according to a three-dimensional state space of trade resistances covering certain most generic aspects of information. We apply this approach to analyze the case of the Brazilian coffee business that has evolved into a bifurcated 'commoditized' and 'de-commoditized' regime in the past twenty years, triggered by the entrepreneurial action of a single company, illycaffè. An entirely new business model has resulted into a shift of the transactional regime in coffee trade, with implications for the distribution of the gains from trade.en_US
dc.publisher|aFrankfurt School of Finance & Management |cFrankfurt, M.en_US
dc.relation.ispartofseries|aWorking paper series // Frankfurt School of Finance & Management |x162en_US
dc.subject.keywordtrade costsen_US
dc.subject.keywordtrade in tasksen_US
dc.subject.keywordtransactional regimeen_US
dc.subject.keywordentrepreneurship in international tradeen_US
dc.titleTransactional innovation and the de-commoditization of the Brazilian coffee tradeen_US
dc.typeWorking Paperen_US

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