firms in the South. Relative to a world with only arm's length transacting, allowing for intrafirm production transfer by …

-enhancing from the point of view of aggregate world welfare because it helps alleviate externalities arising from cross …

globalization. Globalization leads to better matches for all southern workers but only for the best northern workers. As a result …, we show that globalization increases wage inequality in the South but not necessarily in the North. We also study how … globalization affects the size distribution of firms and the patterns of consumption and trade in the global economy …