of their foreign sales. In this paper, I examine the determinants of multinational firms' location and production … decisions and the welfare implications of multinational production. The few existing quantitative general equilibrium models …, I calibrate the model to data on trade and multinational production for twelve European and North American countries …

of multinational firms' location and production decisions and the welfare implications of multinational production. The … costs of foreign investment are large. Second, I calibrate the model to data on trade and multinational production for … divert a sizable fraction of the production of EU multinationals from the US to Canada …