This paper shows that with subsidiaries of different nature due to locational characteristics, the multinational firm not only charges different transfer prices, but also supplies different levels of the intermediate input to the downstream branch. In particular, interior transfer prices are...

This paper shows that in the short run, following an exogenous price shock, the union wage always increases, while the competitive wage may decrease, which contrasts the case in which labor is not unionized.

This paper constructs a model of international joint ventures (JVs) with political-economy considerations as the main motivation. A foreign firm decides whether to undertake full ownership foreign direct investment (FDI), or to form a JV with a home firm, while the home firm lobbies against...

This paper studies intra-industry foreign direct investment in a 2*2*2 general equilibrium model with bilateral monopoly in the factor market and unilateral monopoly fn the product market. Intra-industry investment is presented as the endogenous result of the interactions between multinational...

This paper studies the endogenous relationship between direct foreign　investment (DFI) and trade restriction. A domestic labor union interested in both employment and wages bargains with a foreign firm and lobbies against foreign imports. By endogeneizing the wage rate and incorporating...