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  • All HBS Web  (3,172)
    • People  (13)
    • News  (788)
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    • Multimedia  (13)
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  • December 2021
  • Article

Trade Policy Uncertainty and Stock Returns

By: Marcelo Bianconi, Federico Esposito and Marco Sammon
A recent literature has documented large real effects of trade policy uncertainty (TPU) on trade, employment, and investment, but there is little evidence that investors are compensated for bearing such risk. To quantify the risk premium associated with TPU, we exploit... View Details
Keywords: Trade Policy; Uncertainty; Stock Returns; Risk Premium; Tariff Rates; Portfolio Analysis; Trade; Policy; Risk and Uncertainty; Stocks; Investment Return
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Bianconi, Marcelo, Federico Esposito, and Marco Sammon. "Trade Policy Uncertainty and Stock Returns." Art. 102492. Journal of International Money and Finance 119 (December 2021).
  • Research Summary

International Trade

Economists believe that there is substantial “missing trade” due to trade barriers, such as tariffs and transport costs, that constrain the global activities of firms. Professor Steinwender goes a step farther by studying indirect trade barriers, notably information... View Details

  • 2014
  • Working Paper

Poverty and Crime: Evidence from Rainfall and Trade Shocks in India

By: Lakshmi Iyer and Petia Topalova
Does poverty lead to crime? We shed light on this question using two independent and exogenous shocks to household income in rural India: the dramatic reduction in import tariffs in the early 1990s and rainfall variations. We find that trade shocks, previously shown to... View Details
Keywords: Rainfall; Weather; Crime; Trade Liberalization; India; Crime and Corruption; Poverty; India
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Iyer, Lakshmi, and Petia Topalova. "Poverty and Crime: Evidence from Rainfall and Trade Shocks in India." Harvard Business School Working Paper, No. 14-067, April 2014. (Revised August 2014.)
  • 2019
  • Article

Time Series Experiments and Causal Estimands: Exact Randomization Tests and Trading

By: Iavor I Bojinov and Neil Shephard
We define causal estimands for experiments on single time series, extending the potential outcome framework to dealing with temporal data. Our approach allows the estimation of a broad class of these estimands and exact randomization based p-values for testing causal... View Details
Keywords: Causality; Nonparametric; Potential Outcomes; Trading Costs; Mathematical Methods
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Bojinov, Iavor I., and Neil Shephard. "Time Series Experiments and Causal Estimands: Exact Randomization Tests and Trading." Journal of the American Statistical Association 114, no. 528 (2019): 1665–1682.
  • July 2005
  • Exercise

Insider Trading Quiz

By: Lynn S. Paine and Christopher Bruner
Designed to test understanding of basic theories of insider trading under U.S. law. Presents six scenarios based on actual situations in which insider trading was alleged to have violated U.S. law, as well as a seventh scenario that took place in Italy, permitting... View Details
Keywords: Crime and Corruption; Stock Shares; Governing Rules, Regulations, and Reforms; Law; Theory; Europe; Italy; United States
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Paine, Lynn S., and Christopher Bruner. "Insider Trading Quiz." Harvard Business School Exercise 306-016, July 2005.
  • 2025
  • Working Paper

Exports in Disguise? Trade Rerouting During the U.S.-China Trade War

By: Ebehi Iyoha, Edmund Malesky, Jaya Wen and Sung-Ju Wu
This paper introduces a new measure of tariff evasion through rerouting and applies it to the 2018 U.S.–China trade war, focusing on Vietnam as a transit country. We use transaction-level trade data and define rerouting as the flow of a granular eight-digit Harmonized... View Details
Keywords: Trade; International Relations; Logistics; China; Viet Nam; United States
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Iyoha, Ebehi, Edmund Malesky, Jaya Wen, and Sung-Ju Wu. "Exports in Disguise? Trade Rerouting During the U.S.-China Trade War." Harvard Business School Working Paper, No. 24-072, May 2024. (Revised March 2025.)
  • April 1995 (Revised August 1995)
  • Case

World Trade Organization, The: Toward Free Trade or World Bureaucracy?

By: George C. Lodge and Jack High
In January 1995, the General Agreement on Tariffs and Trade (GATT) evolved into the World Trade Organization (WTO), which faced the task of implementing the recently approved Uruguay Round of international trade agreements. This case describes the development of GATT,... View Details
Keywords: Trade; Agreements and Arrangements; Negotiation Process; Business and Government Relations
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Lodge, George C., and Jack High. "World Trade Organization, The: Toward Free Trade or World Bureaucracy?" Harvard Business School Case 795-149, April 1995. (Revised August 1995.)
  • February 1987 (Revised August 1989)
  • Background Note

United States Trade Law

By: David B. Yoffie
Examines the manner in which U.S. trade law and policy has evolved, with emphasis on trade in manufactured goods and services as well as the relationship between the executive and the legislature. The structure and content of U.S. trade law is discussed including a... View Details
Keywords: Trade; Machinery and Machining; Policy; Law Enforcement; Outcome or Result; Business and Government Relations; United States
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Yoffie, David B. "United States Trade Law." Harvard Business School Background Note 387-137, February 1987. (Revised August 1989.)
  • April 2011
  • Module Note

Financing International Trade

By: C. Fritz Foley
This module note summarizes the key insights covered in the Financing International Trade module of the International Financial Management course. It also provides a framework that guides decisions about which financing terms should be used in which situations. View Details
Keywords: Trade; International Finance; Decisions; Situation or Environment; Framework; Globalization
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Foley, C. Fritz. "Financing International Trade." Harvard Business School Module Note 211-089, April 2011.
  • September 2002
  • Case

World Trade Organization, The

By: David A. Moss and Nick Bartlett
Explores the origins and workings of the World Trade Organization (WTO), focusing particular attention on the special challenges of trade liberalization at the dawn of the 21st century. View Details
Keywords: Trade; Business History; Problems and Challenges
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Moss, David A., and Nick Bartlett. "World Trade Organization, The." Harvard Business School Case 703-015, September 2002.
  • June 1996 (Revised November 1996)
  • Background Note

Economic Gains from Trade, The: Theories of Strategic Trade

The theory of competitive advantage is one of the most widely accepted economic principles among economists. The theory, as well as substantial historical evidence, suggest that free trade raises national income, while government intervention in trade relations... View Details
Keywords: Competitive Advantage; Trade
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Kennedy, Robert E. "Economic Gains from Trade, The: Theories of Strategic Trade." Harvard Business School Background Note 796-184, June 1996. (Revised November 1996.)
  • March 2016
  • Article

Trade Credit and Taxes

By: Mihir Desai, C. Fritz Foley and James R. Hines Jr.
This paper analyzes the extent to which firms use trade credit to reallocate capital in response to tax incentives. Tax-induced differences in pretax returns encourage the use of trade credit to reallocate capital from firms facing low tax rates to those facing high... View Details
Keywords: Taxation; Trade; Credit; Capital
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Desai, Mihir, C. Fritz Foley, and James R. Hines Jr. "Trade Credit and Taxes." Review of Economics and Statistics 98, no. 1 (March 2016): 132–139.
  • Article

The Value of Trading Relations in Turbulent Times

By: Marco Di Maggio, Amir Kermani and Zhaogang Song
This paper investigates how dealers’ trading relations shape their trading behavior in the corporate bond market. Dealers charge lower spreads to dealers with whom they have the strongest ties and more so during periods of market turmoil. Systemically important dealers... View Details
Keywords: OTC Markets; Network; Corporate Bonds; Crisis; Intermediation Chains; Leaning Against The Wind; Networks; Bonds; Behavior; Financial Crisis
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Di Maggio, Marco, Amir Kermani, and Zhaogang Song. "The Value of Trading Relations in Turbulent Times." Journal of Financial Economics 124, no. 2 (May 2017): 266–284.
  • September – October 2007
  • Article

Trading Patterns and Excess Comovement of Stock Returns

By: Robin Greenwood and Nathan Sosner
n April 2000, 30 stocks were replaced in the Nikkei 225 Index. The unusually broad index redefinition allowed for a study of the effects of index-linked trading on the excess comovement of stock returns. A large increase occurred in the correlation of trading volume of... View Details
Keywords: Stocks; Investment Return; Market Transactions; Mathematical Methods
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Greenwood, Robin, and Nathan Sosner. "Trading Patterns and Excess Comovement of Stock Returns." Financial Analysts Journal 63, no. 5 (September–October 2007): 69–81.
  • September 1993 (Revised October 1994)
  • Case

Environment and International Trade

By: Forest L. Reinhardt
During the 1990s, environmental activists became interested in trade issues for the first time. Whereas GATT, the General Agreement on Tariffs and Trade, had previously been the province of trade specialists, a new poster popular among environmentalists depicted the... View Details
Keywords: Trade; Environmental Sustainability; Science-Based Business; Policy; Government and Politics; Agreements and Arrangements; Alliances; Globalization; International Relations; Conflict of Interests
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Reinhardt, Forest L. "Environment and International Trade." Harvard Business School Case 794-018, September 1993. (Revised October 1994.)
  • 29 Jun 2012
  • Working Paper Summaries

Trade Credit and Taxes

Keywords: by Mihir A. Desai, C. Fritz Foley & James R. Hines
  • 2020
  • Working Paper

Tariff Passthrough at the Border and at the Store: Evidence from U.S. Trade Policy

By: Alberto Cavallo, Gita Gopinath, Brent Neiman and Jenny Tang
We use micro data collected at the border and the store to characterize the price impact of recent US trade policy on importers, exporters, and consumers. At the border, import tariff passthrough is much higher than exchange rate passthrough. Chinese exporters did not... View Details
Keywords: Trade Policy; Tariffs; Exchange Rate Passthrough; Economics; Trade; Policy; Inflation and Deflation; United States; China
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Cavallo, Alberto, Gita Gopinath, Brent Neiman, and Jenny Tang. "Tariff Passthrough at the Border and at the Store: Evidence from U.S. Trade Policy." NBER Working Paper Series, No. 26396, October 2019. (Revised June 2020. Harvard Business School Working Paper, No. 20-041, October 2019)
  • March–April 1990
  • Article

The Costly Bargain of Trade Promotion

By: R. D. Buzzell, J. A. Quelch and W. J. Salmon
Keywords: Trade
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Buzzell, R. D., J. A. Quelch, and W. J. Salmon. "The Costly Bargain of Trade Promotion." Harvard Business Review 68, no. 2 (March–April 1990): 141–149.
  • Article

Money and the Terms of Trade

By: J. J. Rotemberg
Keywords: Money; Trade
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Rotemberg, J. J. "Money and the Terms of Trade." Journal of International Economics 19, nos. 1-2 (August 1985): 141–160.
  • March 1996 (Revised June 1996)
  • Case

Choices in U.S. Trade Policy

By: Louis T. Wells Jr. and Courtenay Sprague
Describes the moments leading to the conclusion of the Uruguay Round of international trade negotiations and the outcome of those negotiations. Discusses some of the options facing the Clinton Administration with respect to its international trade policy. View Details
Keywords: Trade; Governing Rules, Regulations, and Reforms; Policy; Negotiation; Outcome or Result; United States
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Wells, Louis T., Jr., and Courtenay Sprague. "Choices in U.S. Trade Policy." Harvard Business School Case 796-117, March 1996. (Revised June 1996.)
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