Handbook of International Trade and Transportation
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Handbook of International Trade and Transportation

Edited by Bruce A. Blonigen and Wesley W. Wilson

International trade has grown rapidly over the past half century, accommodated by the transportation industry through concomitant growth and technological change. But while the connection between transport and trade flows is clear, the academic literature often looks at these two issues separately. This Handbook is unique in pulling together the key insights of each field while highlighting what we know about their intersection and ideas for future research in this relatively unexamined but growing area of study.
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Chapter 10: Firms in international trade

Federico J. Díez, Jesse Mora and Alan C. Spearot

Abstract

Firms play a critical role in the global economy. In this chapter, the authors survey the behavior of firms in the international economy, both in theory and in the data. They first summarize the key empirical facts that motivate the study of firms in trade. Then they detail recent theoretical developments on the micro-foundations of firm behavior in an international context, focusing on how firms select into exporting and how firms respond to international shocks. Finally, they turn to a “real world,” empirically focused view of exporting, beginning with the growth dynamics of firms expanding to global markets, and then addressing the critical financing decisions firms make when engaging in international commerce. They conclude with directions for future research.

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