This paper contributes to research endogenizing multinational firms in general-equilibrium trade models. We attempt to integrate separate contributions on horizontal multinationals which produce the same final product in multiple locations, with work on vertical multinationals, which...

The structure of a multinational firm, that is how its affiliates relate to one another, is critical for understanding where multinationals locate, how policy affects them, and their resilience to localized shocks. Here, we review the two main structures - market-seeking horizontal and...

One of the main challenges when analyzing multinational firms (MNEs) is that this group is comprised of a rich variety of firms engaged in a spectrum of activity. In response to the separate models describing one type of MNE or another, the Knowledge Capital model was developed in order to...