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Delocation
1. The movement of firms and their resulting employment from one country to another as a result of a change in trade policy. 2. More specifically, the effect of an import tariff or export subsidy in causing firm entry at home and exit abroad, so that domestic consumers gain from increased competition and/or reduced transport costs, while foreign consumers similarly lose. Effect identified by Venables (1985,1987).
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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