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- W2148451387 abstract "Retail chains and imports from developing countries have grown sharply over the past 25 years. Wal-Mart’s chain, which currently accounts for 10% of U.S. imports from China, grew 10-fold and its sales 90-fold over this period, while U.S. imports from China increased 30-fold. We relate these trends using a model in which scale economies in retail interact with scale economies in the import process. Combined, these scale economies amplify the eects of technological change and trade liberalization. Falling trade barriers increase imports not only through direct reduction of input costs but also through an expanded chain and higher investment in technology. This mechanism can explain why a surge in U.S. imports followed relatively modest tari reductions and why Wal-Mart abandoned its “Buy American” campaign in the 1990s. Also consistent with these facts, we show that tari reductions have a greater eect the more advanced the retailer’s technology. The model has implications for the pace of the product cycle and sheds light on the recent apparent acceleration in foreign outsourcing." @default.
- W2148451387 created "2016-06-24" @default.
- W2148451387 creator A5070173304 @default.
- W2148451387 date "2005-10-07" @default.
- W2148451387 modified "2023-09-27" @default.
- W2148451387 title "Putting a Smiley Face on the Dragon: Wal-Mart as Catalyst to U.S.-China Trade" @default.
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