The efficacy of a local content requirement as an employment enhancing policy in the host country is weakened in the presence of transfer price manipulation by a vertically and horizontally integrated multinational firm. For given host and foreign country tax rates, there is a threshold tariff...

Preferential trade agreements (PTAs) usually result in increased trade amongst member countries and lower prices within the PTA. Thus the markets are assumed to be “more competitive” because lower prices are taken to imply “decreased market power” due to a reduction in price-cost...