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Tariff policies, variable markups, and within-sector missallocation

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  • Atsushi Tadokoro

    (Graduate School of Economics, Osaka University)

Abstract

Multinational enterprises (MNEs) from emerging countries have shown their ability to compete as latecomers against established enterprises in various industries. Such latecomers are known as gdragon multinationals h and much research has been conducted to analyze their behavior and competitive advantages. This paper focuses on the strategy implemented by the Korean automobile company Daewoo Motors to expand into the global market. Based on the international business literature on the emergence of multinational enterprises in emerging countries, this paper examines why Daewoo Motors invested first in developing economies such as Uzbekistan and Eastern Europe upon expanding into the global market. It discusses both the growth of foreign sales and the organization of overseas assembly plants. In addition, this paper explores the impact of investing in other emerging countries on the competitiveness of the firm and evaluates the potential risks of this approach.

Suggested Citation

  • Atsushi Tadokoro, 2020. "Tariff policies, variable markups, and within-sector missallocation," Discussion Papers in Economics and Business 20-16, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:2016
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Variable markups; Misallocation; Firm heterogeneity;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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