Business services like advertising, legal support and market research are key inputs for all manufacturing companies in an international business environment, since they are essential for accessing markets abroad. This column argues that exporters with the option to outsource such services to external providers - as opposed to employing workers directly - can reduce the costs of exporting. As a result, trade liberalisation can lead to considerably more foreign entry, higher variety gains from trade and larger producer surplus for smaller manufacturers.

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23 June 2024

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Vox EU

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https://cepr.org/voxeu/columns/outsourcing-market-access-services-key-strategy-firms-expanding-abroad

This Blog is published under the centre's Trade programme.