Trade also promotes the transfer of technologies, as when multinational firms or transplanted firms bring advanced production methods to new markets. 2  The estimates ranged from $ to $  3  Cox and Alm (2007) discuss the benefits of trade in the modern global economy. 4  Bernard and Jensen (1999) find that exporting firms are more productive than non-exporters.
Bernard, Jensen, and Schott (2006) document the tendency of trade to reduce production at low-productivity plants and to increase output at highproductivity plants in the United States, a shift that raises average productivity. 2  BIS Review 41/2007  Trade and finance are closely linked and mutually supporting, and in recent decades international financial flows have grown even more quickly than trade volumes.