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• W2977559092 abstract "Many multinational firms attempt to cope with trade policy uncertainties by developing the option of manufacturing their goods in multiple production facilities in different countries. In this chapter, we explore how such “production switching” options affect the vulnerability of a country’s exports to foreign protectionism. We present a theoretical model of such behavior and show that production switching increases the elasticity of a country’s export with respect to tariffs. The magnitude of the elasticity depends on a country’s position in the value chain. We use the model’s predictions to provide new insights into the vulnerability of China’s exports during the current Sino–US trade war." @default.
• W2977559092 created "2019-10-10" @default.
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• W2977559092 date "2019-10-21" @default.
• W2977559092 modified "2023-10-16" @default.
• W2977559092 title "Production Switching and Vulnerability to Protectionism" @default.
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• W2977559092 doi "https://doi.org/10.1108/s1745-886220190000014006" @default.
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