This article extends the model of Brander and Spencer (1985) to study whether the simultaneous elimination of export subsidies is feasible. It is shown that the incentive for subsidizing exports to reoccur will exist when all subsidizing countries are forced to withdraw their subsidies on...

In a simple three-country model where two countries sign a free trade agreement eliminating restrictions on trade and investment between them, this paper shows that any benefits accruing to the investing country from engaging in outward FDI will depend on the difference between the net return...