This paper investigates systematic linkages among "reverse imports", foreign direct investment, and exchange rates. We have in mind the competition in the Japanese market of a Japanese multinational firm and a Chinese domestic firm. Products are differentiated based on Japanese consumers' brand...

This paper models the production allocation choices of a multinational enterprise (MNE) in a three-country framework -- a northern country and two southern countries. The products made in the southern countries are of lower quality, and have higher substitutability than those between the south...

This paper examines the FDI and exchange rates nexus in the context of one FDI source and two host countries. It focuses on the effect of exchange rates on the relative FDI inflows between the two host countries. The theoretical analysis shows explicitly that the relative FDI inflows are a...

This paper critically evaluates the policy literature surrounding China's exchange rate regime.It first discusses several popularly raised contentions in relation to the dollar peg employed by China, which in fact are poorly grounded in evidence.These include notions that the RMB is clearly...