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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.


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.


Original publication

The Theory of the Firm Goes Global

Marin Dalia
The Impact of Incomplete Contracts on Economics
Published in 2016

Reading recommendations

Corporate Hierarchies and International Trade: Theory and Evidence

Marin Dalia and Verdier Thierry
Journal of International Economics
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Globalization and the Empowerment of Talent

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Journal of International Economics
Published in 2012

The Organization of Firms in a Global Economy

Marin Dalia, Verdier Thierry and Helpman Elhanan
Published in 2008