We develop a model with two asymmetric countries. Firms choose the number andthe location of plants that they operate. The production of each firm increases whentrade costs fall. The fall also induces multinationals to repatriate their production intoa single country, which is likely to be the...

The nature and economic role of legally constituted firms varies between market economies and changes over time. In particular, the governance of leading firms and how they develop distinctive organisational capabilities vary between institutional regimes and their supporting political-economic...