Selling high-tech inputs to the enemy
| Autor: | Yoonho Choi, E. Kwan Choi |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
021103 operations research Profit (accounting) Short run business.industry media_common.quotation_subject 05 social sciences 0211 other engineering and technologies Wage Developing country 02 engineering and technology Competitor analysis Management Science and Operations Research Adversary General Business Management and Accounting High tech Industrial and Manufacturing Engineering Commerce 0502 economics and business business 050203 business & management Downstream (petroleum industry) media_common |
| Zdroj: | International Journal of Production Economics. 234:108040 |
| ISSN: | 0925-5273 |
| DOI: | 10.1016/j.ijpe.2021.108040 |
| Popis: | Trade wars are being waged by the United States and Japan. Exports of high-tech inputs (e.g., fluorinated polyimides in semiconductor devices) are now curbed by these countries. Manufacturing high-quality outputs require the use of high-tech inputs. Exports of high-tech inputs may not only increase the Northern innovator's profit in the short run but also may create permanent rivals in the downstream market in developing countries. This paper investigates whether it is profitable for a Northern innovator to export high-tech inputs to foreign competitors who would compete in the downstream market. If wage disparity exists between the two countries and products are differentiated, selling the high-tech input to foreign competitors may be mutually beneficial for both the innovator and the foreign rivals in the South. When the finished products are homogeneous, selling only the high-tech input to a sufficiently large number of Southern firms may increase the innovator's profit. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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