Organizations and Trade

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Abstract
We survey an emerging literature at the intersection of organizational economics and international trade. We argue that a proper modeling of the organizational aspects of production provides valuable insights on the aggregate workings of the world economy. In reviewing the literature, we describe certain predictions of standard models that are affected or even overturned when organizational decisions are brought into the analysis. We also suggest potentially fruitful areas for future research.technology, fragmentation, wage inequality, matching, internalization, contractual frictions, comparative advantage, outsourcing, offshoring

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