Excerpt

International Trade, Multinational Activity, and Corporate Finance. C. Fritz Foley, October 2014, Paper, "Recent research brings unique insights from corporate finance to the study of international trade and investment. Insights about differences in the development of financial institutions across countries, the role of financial constraints, and the use of internal capital markets are proving to be central in understanding international economics. The ability to access financial capital to pay fixed and variable costs affects the choices firms make regarding trade on the intensive and extensive margins, and, as a consequence, influence aggregate trade patterns..." Link