The Origin of Goods: Rules of Origin in Regional Trade by Olivier Cadot, Antoni Estavadeoral, Akiko Suwa Eisenmann,

By Olivier Cadot, Antoni Estavadeoral, Akiko Suwa Eisenmann, Thierry Verdier

This booklet seems at principles of foundation in preferential buying and selling agreements and their becoming value in alternate negotiations. The book's message is that principles of beginning can act as robust boundaries to exchange and feature been intentionally used as such.

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The Origin of Goods: Rules of Origin in Regional Trade Agreements (Centre for Economic Policy Research)

This booklet seems at ideas of foundation in preferential buying and selling agreements and their becoming value in exchange negotiations. The book's message is that ideas of starting place can act as robust obstacles to alternate and feature been intentionally used as such.

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A short conclusion follows. 1 A simple model of strategic outsourcing To investigate the issue of strategic outsourcing and the impact of RoOs in such a context, we sketch here a model of outsourcing in an imperfect competitive framework as expanded in Thoenig and Verdier (2004a). There are two firms a and b competing in a homogenous final good market. As in Dixit and Grossman (1982) or Shy and Stenbacka (2003a), the technology of production involves a continuum of tasks (stages) of production ranging over the interval [0,1].

1 Reaction curve of outsourcing. firm h goes down. This, in turn, reduces firm h’s marginal profitability to outsource intermediate tasks and leads to a reduction in Sh . The reverse effects occur when Sh0 > Sm . From that discussion, it follows that outsourcing decisions between firms are strategic substitutes in the range Sh0 < Sm and strategic complements when Sh0 < Sm : The characterization of the symmetric Nash equilibrium Sà is then easily obtained by the following equation À4c0 (Sà ) 1 À c(Sà ) À ½v00 (Sà ) À vi0 (1 À Sà )Š ¼ 0; 3 3 and it is immediately seen that: Sf < Sà < Sm : The equilibrium in strategic outsourcing is depicted in Fig.

2004), ‘Comparative Study of G8 Preferential Access Schemes for Africa; IDS. UNCTAD (2003), Trade preferences for LDCs: an early assessment of benefits and possible improvements. UNCTAD/TCT/TSB/2003/8, United Nations: New York and Geneva. World Bank (2005), Global Economic Prospects. 1 Introduction The proliferation of Free Trade Areas (FTAs) in the last decade has begun to generate interest in one of its most important components: Rules of Origin or RoO for short. These specify the conditions under which a good becomes eligible for zero tariffs in an FTA.

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