forthcoming in journal of economics and management strategy intermediaries entrepôt trade hong kong re exports chinese goods robert c feenstra university california davis nber gordon h hanson san diego august 2002 abstract this paper we examine s role intermediating between china the rest world traders distribute a large fraction net customs insurance freight charges are much more expensive when they leave than enter markups on higher for differentiated products with variance export prices sent to further processing these results consistent view that resolve informational problems exchange additional suggest price discriminate across destination markets use transfer pricing shift income from high tax countries authors thank seminar participants at columbia florida international monetary fund tel aviv michigan wisconsin
