The phenomenon of fast-growing business activities of multinational corporations around the world has generated much interest in understanding its implications for the development of the world economy as well as the relationships among national economies. By analyzing the worlds top 2000 firms...

We propose an economic model of business groups that allows for the cooperative behavior of groups of firms, where the number and size of each group is determined endogenously. In this framework, more than one configuration of groups can arise in equilibrium: several different types of business...