This paper examines the implications of various contracting alternatives between exporting and importing firms on the volume of international transactions. The contracts that we study are determined in a bargaining situation under exchange-rate uncertainty. First we look at contracts which...

This paper examines host country government (HCG) commercial policy towards imports resulting from intrafirm trade conducted by a multinational corporation (MNC). The effectiveness of the HCG's commercial policy is impaired by its limited information about the MNC's cost of production. The...

The paper examines the impact of the emergence of regional blocs on the patterns of interbloc and intrabloc trade when firms have the option to engage in foreign direct investment (FDI). For exogenously given external tariffs, when firms have the option to engage in FDI, all interbloc trade may...

During the last decade the extent of inward foreign direct investment (FDI) in the United States has increased dramatically. An important aspect of industries where most FDI takes place is their high level of concentration. This paper investigates how strategic interactions among domestic and...

The authors investigate the choice of currency of invoicing in international trade under exchange rate fluctuations. Predictions derived from a model developed by Donnenfeld and Zilcha in 1991, and others, regarding the optimal choice of currency of invoice are tested for imports into Canada....

The effects of trade among similar countries and that among dissimilar countries on the relative wage are examined. Product quality is a choice variable by firms. Quantity production is assumed to satisfy constant costs, while quality production is more skilled-labor intensive than quantity...