In this paper, we adopt the vertical differentiation duopoly framework to give a full description of firms' relocation decisions, when the removal either of trade barriers or of restrictions on capital outflows/inflows (globalization) allows them to serve the domestic market through foreign...

Relocation is recently one of the most widely discussed problems, especially in the old member states of the European Union. At the same time, developments in the target countries of relocation are less widely discussed. Hungary, with other new EU member countries, is one of the net target...