THE RELATIONSHIP BETWEEN CORPORATE GROWTH STRATEGY (DIVERSIFICATION VERSUS CONCENTRATION) AND CORPORATE PROFIT IS THE ISSUE THAT HAS PROBABLY GARNERED MOST ATTENTION IN THE FIELD OF RESEARCH ON STRATEGIC MANAGEMENT, BUT IT IS ALSO ONE WHERE EVIDENCE IS DISPARATE AND INCONCLUSIVE. HENEE, THIS ARTICLE FOCUSES ON PROVIDING A NEW BACKGROUND TO THIS DISCUSSION, BY MAKING A COMPARISON TO DETERMINE WHICH GROWTH STRATEGY YIELDS BETTER PERFORMANCE AND PROFITABILITY. TO THIS END, THE STUDY CONCENTRATED ON THE ANALYSIS OF 38 CHILEAN ECONOMIC GROUPS SELECTED BY SIMPLE RANDOM SAMPLING. THE MAIN RESULT OF THIS RESEARCH STUDY IS THAT CONCENTRATED ECONOMIC GROUPS ACHIEVE INCREASED PROFITABILITY AND PERFORMANCE AS COMPARED WITH DIVERSIFIED GROUPS, BUT HA VE A GREATER VARIATION IN THEIR PROFIT.

THIS PAPER USES AN ASYMMETRIC ARDL MODEL TO EXAMINE THE INFLUENCE OF REAL EXCHANGE RATE VOLATILITY ON TRADE FLOWS BETWEEN THE UNITED STATES AND CHINA FROM JANUARY 2003 TO JUNE 2020, WITH THE TOP TWELVE SECTORS OF DISAGGREGATED DATA BEING EMPLOYED. THE RESULTS SHOW THAT NONLINEAR ADJUSTMENT OF THE VOLATILITY HAS A MORE SIGNIFICANT OUTCOME THAN THE ARDL MODEL ON BOTH U.S. EXPORTS TO AND IMPORTS FROM CHINA IN THE LONG-RUN, WHILE INCREASED VOLATILITY WILL BOOST BOTH U.S. IMPORTS FROM AND EXPORTS TO CHINA. BESIDES, IT SHOWS THAT CHINA BENEFITS FROM U.S.- CHINA TRADE ON THE SELECTED SECTORS AFTER JOINING THE WTO MORE THAN THE UNITED STATES.