By explicitly modeling distortion in the intermediate goods sector, I develop a model of an endogenous vertical multinational enterprise. Firms invest abroad to lower cost of multi-stage production. The implications for international trade and investment differ markedly from the conventional...

This paper considers the welfare implications of a discriminatory preferential trading arrangement in a general equilibrium model where imports are differentiated by region of origin and terms of trade are fixed. The relationship between the initial (pre-reform) relative volume of trade with the...

This paper models strategic taxation policy of home and host governments when a multinational enterprise sets transfer prices on globally-joint inputs such as research and development. Tax credit and deduction allowances, as well as no taxation of foreign-earned profits, result in identical...

A growing proportion of international trade within the Association of Southeast Asian Nations (ASEAN) occurs within multinational enterprises. This paper reviews the present trade and foreign investment environment within ASEAN members and analyzes the impact of an ASEAN free trade agreement...

In a small open economy model where imports (exports) are differentiated by region of origin (destination), the welfare effects of a preferential trade agreement (PTA) are considered. Trade creation is found to be a concave function of pre-union partner trade shares. This contrasts with earlier...

We review the evolution of modern Chinese intellectual property right (IPR) laws and enforcement and explore economic and political forces involved in international conflicts over Chinese IPR protection. Our analysis considers why the U.S. and China moved from conflict to cooperation over...

This paper develops a simple model of imperfectly competitive trade in commodities with both military and civilian applications, a.k.a. dual-use commodities. We consider the role of export barriers and foreign economic aid in encouraging peaceful rather than military application of dual-use...