Increasingly sophisticated machinery, short product life-cycles, and demanding user requirements have increased competition in the machine tool market. Because all machine tool companies have limited resources, they must seek competitive advantages. Strategic collaborations have become...

This paper extends the results obtained by Hwang et al. (1997) and Yang (2005) to the case of multi-domestic firms. Either the domestic government's budget constraint may be binding or there exists the social cost which caused by financing the export subsidy, we find that the policy of the...