This study employs a differentiated Cournot model with both horizontal and vertical product differentiation. It scrutinizes the implications of frictions over manufacturing high quality (upstream market power) on the endogenous foreign market entry mode and product quality choice. Both high-quality exports and subsidiary sales require high-quality inputs supplied by a monopoly upstream firm, and thus are costly. Relative product quality, product substitutability, and product-specific trade costs are the key for the variation in input/output prices, sales and the markup between an exporter and a multinational, and have significant trade policy implications for high-quality exports and subsidiary sales.

中文翻译：

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为进入国外市场采购产品质量

这项研究采用了具有水平和垂直产品差异的差分古诺模型。它仔细研究了制造质量（上游市场力量）方面的摩擦对内生的国外市场进入模式和产品质量选择的影响。高质量的出口和子公司销售都需要上游垄断企业提供高质量的投入，因此成本很高。相对产品质量，产品可替代性和特定于产品的贸易成本是投入/产出价格，销售和出口商与跨国公司之间加价幅度变化的关键，并且对高质量出口和子公司销售具有重要的贸易政策影响。