The goal of the present paper is to explore the optimal subsidy of R&D by both the foreign and home countries in a model based on Herguera and Lutz (The World Economy, 1998). While they assume the home country subsidy is designed to help the home country "leapfrog" the foreign, we assume...

This paper extends Gretz, Highfill, and Scott, "R&D Subsidies and Multinational Firm Ownership," Global Economy Journal (2007) to include the case of exporting to one or two markets. The primary results are that exporting is welfare enhancing for the home country (whether or not the firm is...

Data was collected from the U.S. eBay site for the categories of animation art and Steiff teddy bears. It was found that U.S. consumers bought items from sellers in 13 countries whereas slightly over 20% of sellers were not in the U.S. In general the outcomes of the auctions (final price, number...

Consider an industry where a "home" and a "foreign" firm compete on the basis of both price and quality. Further, suppose cost considerations imply that potential market size is positively related to quality. This paper suggests that it is not necessarily the case that both the home and foreign...

Many developing economies of the world today have been building up massive foreign exchange reserves of industrialized economies. A clear example of this is China. In February of 2005, China surpassed Japan as the world's largest holder of foreign exchange reserves. After the Asian Contagion...