This paper investigates linkages among quot;reverse importsquot;, foreign direct investment, and exchange rates. As an example we have in mind the competition in the Japanese market of a Japanese multinational firm and a Chinese domestic firm. Products are differentiated based on Japanese...

We construct a partial equilibrium model of intra-industry cross-hauling DFI with unionized duopoly, where wages and employment are determined through Nash bargaining between firms and national labor unions. We show that under symmetry, cross-hauling DFI is the unique Nash equilibrium, in which...

The paper embeds child labor in a standard two-sector general-equilibrium model of a small open economy facing perfectly competitive markets, efficiency wages, and free-trade. The modern sector produces a homogeneous good using skilled adult labor and capital, and offers effort-based efficiency...

This paper examines the welfare effects of emission taxes under a choice between an international joint venture (JV) and a full-ownership FDI (Foreign Direct Investment) by parent firms from a developed country (the North) and a developing country (the South), as well as their location and share...

This paper studies the impact of foreign direct investment (FDI) on wages and employment. When labor-management bargaining is industry-wide, two effects of FDI are identified: the collusion effect and the threat-point effect. It is shown that (i) FDI always reduces the negotiated wage, and (ii)...