How Does International Competition Affect the Power Distribution in Firms?
In recent years, corporations have become more decentralized and decision-making power within the company has moved from the top level to lower levels of management. DALIA MARIN and her research team are interested in the question of how international trade has affected these changes in the organization of firms. As she explains in this video, they have used recent mathematical models of trade and have combined these with the theory of the firm. Then they tested this theory with empirical data collected in interviews in Austria and Germany. Their findings suggest that the level of international competition has an impact on whether firms choose centralized or decentralized power structures and changes in competition also tend to influence these structures. These insights allow new predictions on the future organization of international trade.
DOI:
https://doi.org/10.21036/LTPUB10462Researcher
Dalia Marin holds the Chair in International Economics at the University of Munich. She is also Senior Research Fellow at the European think tank Bruegel, Brussels, and Research Fellow at the Centre for Economic Policy Research, London. Previously, she was Associate Professor at Humboldt University Berlin and Visiting Professor at Harvard University, Stanford University and New York University. Some of her professional affiliations have included the International Monetary Fund, the National Bureau of Economic Research and the European University Institute. Among her research interests are international trade and foreign direct investment, as well as corporate finance and the organization of the firm and the economics of transition and emerging markets.
Ludwig Maximilian University Munich (Ludwig-Maximilians-Universität München)
"LMU Munich is one of the leading universities in Europe. Carrying on a tradition that goes back over 500 years, LMU offers challenging study programs and provides an ideal environment for top-level research. "Introducing LMU" gives an insight into learning and teaching as well as research and life at LMU." ( Source )
Original Publication
The Theory of the Firm Goes Global
Dalia Marin
Published in 2016