Brands in International Trade Theory
Multidisciplinary Insights from New AIB Fellows
ISBN: 978-1-78441-039-1, eISBN: 978-1-78441-038-4
Publication date: 11 August 2014
Abstract
With competitive rivalry eroding traditional product differentiation, legally protected brands have gradually become one of the most prized assets of multinational corporations. The defense of domestic brand shares and the expansion of well-known brands into new foreign markets have become important tasks of corporate managers. Yet, to date, there is no clear recognition of this increasing role of brands in the economic theory of international trade. This paper explores the implications of strong brands for intra-industry trade, for Vernon’s product-cycle model and for international trade overall. On balance, the ascent of global brands is shown to raise trade in standardized products, exacerbate the shift toward intra-firm trade, and sustain the dominance by large centralized multinationals.
Keywords
Acknowledgements
Acknowledgment
Thanks are due to Jean J. Boddewyn and two anonymous reviewers for constructive comments. Remaining errors and mistakes are the author’s alone.
Citation
Johansson, J.K. (2014), "Brands in International Trade Theory", Multidisciplinary Insights from New AIB Fellows (Research in Global Strategic Management, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 139-157. https://doi.org/10.1108/S1064-485720140000016005
Publisher
:Emerald Group Publishing Limited
Copyright © 2014 Emerald Group Publishing Limited