Introduction -- Cold politics, hot economics -- Multinational firms and political crisis -- Exit : managing crisis by finding the door -- Voice : diplomacy from the private sector -- Loyalty without solidarity -- Conclusion -- Interview appendix -- Index.

This paper analyses the wage demands of a sector-level monopoly union facing internationally mobile firms. A simple two-country economic geography model is used to describe how firms relocate in function of international di erences in production costs and market size. The union sets wages in...