Commercial policy in a 'fragmented' world

Article Abstract:

The practice of purchasing parts from multiple international sources to be assembled in the destination country is growing in popularity. As vertical markets like these are possible because of increased communications and will expand further if trade barriers are removed.

International aspects

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International trade and business cycles: is vertical specialization the missing link?

Article Abstract:

It is assumed that when the economy falters in one country, the economic downturn will be carried to its trading partners. Models for normal horizontal trade forms do not support this. When models represent trade that is specialized and vertical, it is more clear why this happens.

Models, Business cycles

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