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We can see the same trend for automobile and truck parts. If we read this trend of the unit price as change in marginal cost, with greater the difference in marginal costs between Thailand and Indonesia, the export platform strategy was chosen and the exports of auto-related products from Thailand to Indonesia rapidly grew. This evidence is coincident with Lemma 3.
Finally, did the AFTA give an incentive to the MNE to take export platform strategy in Thailand for Indonesia’s automobile market? A series of deregulation measures in the past few years has led to conspicuous changes in the business environment for the ASEAN automobile industry...
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