In this paper, we investigate internationalization strategies of German manufacturing firms in the European Union. We give reasons for the hypothesis that traditional market strategies had been replaced by border-crossing production networking based on the comparative advantage of host countries...

A basic result of new economic geography (NEG) models is that the proximity to consumer markets impacts wages and employment within regions. The ongoing process of European integration, being targeted on the reduction of barriers to trade and factor mobility, has presumably changed relative...

This article offers a new reading ofintra-European trade based on recent developments innew international economics (Melitz, 2003; Chaney,2008). These models take the heterogeneity of firmsinto account and offer a micro-economic analysis ofthe process of selection at work for firms enteringmarkets....