The purpose of this paper is to examine the welfare implications of voluntary trade restraints in the context of duopoly with product differentiation. It is shown that, irrespective of whether firms compete in quantities or prices, a voluntary export restraint (VER) set at the free trade...

To examine how greenhouse-gas emission controls affect a country's industrial and trade structures, this article presents an open economy model that has both Ricardian and Heckscher-Ohlin features. We specifically compare emission quotas, emission taxes, and emission standards. The patterns of...

Using a simple Cournot-oligopoly model, the paper examines the effects of voluntary export restraints (VERs) on profits, market shares, consumers' surplus, and domestic welfare when the domestic market is open to foreign direct investment (FDI) or exports from a third country. A VER may induce...

The paper examines how a movement from segmented markets to integrated markets affects the volume of trade, consumer prices, profits and welfare in a monopoly model. The monopolist can initially discriminate consumer prices among markets with trade costs but has to take arbitrage into account as...

Antidumping (AD) petitions are often withdrawn in favor of VERs and price undertakings. We compare foreign firms' incentive to engage in foreign direct investment (FDI) under a VER and a price undertaking, with special emphasis on foreign rivalry. We show that a VER is less likely to induce FDI...

Multinationals are often required to form joint ventures (JVs) with local firms when entering the host country market. Explicitly taking corporate control into account, we explore the relationship between technology transfer and foreign ownership regulation in the presence of technology...