We construct a two-country international trade model with national and multinational (multiplant) firms and we investigate the effect of economic integration on welfare both at the country and at the world level. Results crucially depend on the share of industrial profits owned by a country....

In this paper, we constructs a model with two-region, two sector and two types of workers. One type of workers has a comparative advantage in agricultural production and mobile between two regions, while the other type of workers has a comparative advantage in producing manufactured goods and...