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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Market Power, Market Structures, International Trade and Policy.
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; F - International Economics > F0 - General > F01 - Global Outlook; F - International Economics > F1 - Trade; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission; F - International Economics > F5 - International Relations, National Security, and International Political Economy; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M16 - International Business Administration; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics

References

Asprilla. A, Berman. N, Cadot. O, Jaud. M, Trade Policy and Market Power: Firm-level Evidence, Centre for Economic Policy Research. (2016).

Bernheim, B.D., Whinston, D.M. (2014). Microeconomics 2e. United States McGraw Hill.

McConnell, R.C., Brue, L.S., Flynn, M.S. (2012). Selected Materials from Microeconomics 19/e, Econ 2, Berkeley City College. United States: McGraw Hill.

Michael, B. D, Khang, M. L, Dynamic Gains from International Trade with Imperfect Competition and Market Power. Review of Development Economics, Volume 5, Issue 2, June 2001, 239-255.

Paul R. Krugman (1994). Rethinking International Trade: Cambridge, Massachusetts: MIT Press.

Pugel, A.T., (2012). International Economics: 16th Edition. United States: McGraw Hill.