In a general equilibrium model of a small open economy with a nontraded goods sector involuntary low-skilled labour unemployment is introduced by an exogenously given wage rate, orientating ourselves by what has been called in the literature the 'European scenario'. By the concept of constrained...

Im Zuge der Globalisierung nimmt die Intensität der Beziehungen zwischen Nationen, zwischen Unternehmen und zivilgesellschaftlichen Akteuren zu. Transnationale Normbildungsnetzwerke entstehen, die einen bislang wenig bekannten Einfluss auf alle Lebensbereiche (Wirtschafts- und...

This paper reviews the theory of foreign direct investment (FDI), focusing on an apparent con‡ict between theory and recent trends in the globalized world. The bulk of FDI is horizontal rather than vertical, but horizontal FDI is discouraged when trade costs fall. This seems to conflict with...