This study uses the 1989 Canada-U.S. Free Trade Agreement as a source of exogenous shock to product markets to establish a causal effect of competition on acquisition returns to shareholders. Following the agreement, acquirers exposed to greater increases in competitive pressure experience...

I provide evidence on the impact of foreign competition on firms' propensities to engage in mergers and acquisitions. Using import tariff reductions as exogenous shocks that increase foreign competition, I find that affected firms are more likely to make acquisitions following tariff reductions....

This paper reviews the theory of foreign direct investment (FDI), focusing on an apparent con‡ict between theory and recent trends in the globalized world. The bulk of FDI is horizontal rather than vertical, but horizontal FDI is discouraged when trade costs fall. This seems to conflict with...

The recent wave of China’s acquisitions has expanded the perimeter of FDI screening based on national security grounds in many advanced economies. Only a few goods have been generally part of this protected perimeter, consistently with the methodology proposed by Theodore H. Moran according to...

This paper develops a theoretical framework where a multinational firm (MNE) is allowed to acquire or sell a productive asset in multiple segmented asset markets. The asset is used to produce a final good which can be sold in multiple countries, with segmented product markets, undergoing trade...

The issue of optimal patent protection is of great importance since the inclusion of the trade related aspects of intellectual property rights accord into the purview of the World Trade Organization. Hitherto, the literature has focused on the optimal patent regimes from the perspective of...

This paper focuses on an apparent conflict between the theory of foreign direct investment (FDI) and recent trends in the globalized world. The bulk of FDI is horizontal rather than vertical, and standard theory predicts that horizontal FDI is discouraged when trade costs fall. This seems to...

This paper develops a theoretical framework where a multinational firm (MNE) is allowed to acquire or sell a productive asset in multiple segmented asset markets. The asset is used to produce a final good which can be sold in multiple countries, with segmented product markets, undergoing trade...

The policy challenge. Citizens and politicians in Western democracies have increasingly become aware of the importance of human rights, civil liberties, social rights, and sustainability issues as well as the different adherence to basic rights (such as equal treatment) all over the world. This...