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Repercussions of International Trade on the Market Power of Firms in Different Market Structures.

Rashid, Muhammad Mustafa (2018): Repercussions of International Trade on the Market Power of Firms in Different Market Structures.

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Abstract

The purpose of this paper is to provide an introduction of market power in different market structures and how this market power diminishes because of international trade and the effects on welfare. A review of relevant literature from Pugel (2012), McConnel Bruce and Flynn (2012) and Bernheim and Winston (2014) provides the effects of international trade on the market power conditions in different market structures and the effects on welfare. Asprilla, Berman, Cadot and Jaud (2016), Devereux and Lee (2001) and Krugman (1994) serve to provide further evidence through PTM literature, bilateral exchange rate shocks and protectionism.

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