This article summarizes key insights from the firm heterogeneity and trade literature, the theme-day topic of the 2006 IATRC Annual Meeting, and draws their implications for the agricultural and food industries

This paper investigates the determinants of foreign direct investment (FDI) and its relationship to trade in the U.S. food processing industry. A representative multinational corporation maximizes profits by choosing between production in the home country, which is exported, and production in a...