Multi-product firms and trade policy

• Main Authors: Ching-Hang Ling, 凌敬航
• Other Authors: Shih-Jye Wu
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/3r6x83

碩士 === 國立中山大學 === 經濟學研究所 === 107 === This paper discusses the effects of the specific tariffs imposed by the government on the output and product range of multi-product firms, as well as the products are more substitutable, Tariffs reduce not only the output of each variety, but also the product scope of multi-product firm. We also discusses the distribution structure of multi-product firms at home and abroad under opening of offshore. For each product, the manufacturer will choose the production area with the lowest cost, and move some production lines to foreign countries, while maintaining the other production at home. In particular, when we conclude that the wages in offshoring areas are lower than those in the home countries of multi-product firm, multi-product manufacturer will turn over the products with high unit cost to overseas for production. However, when domestic wages are lower than foreign wages, multi-product firm will turn over the products with low unit cost to overseas for production. In the case of offshoring, the import tariff will affect the relative cost advantage of home-made goods or offshoring, so it will also affect the arrangement of domestic and foreign product types and quantity of multi-product manufacturers. Last, the differences of product range between the home production and offshoring available are compared.