Purpose – This chapter studies a two-country model in which firms have the opportunity to invest directly both in home and foreign activities while operating in the context of imperfectly competitive markets for final goods and services. The model is an extension of Choi (1989). Methodology...

We develop a framework to explore the equilibrium implications of socially responsible investments (SRI). Investors acquire positions in ex-ante identical firms, and firms compete in selling products to consumers. A fraction of investors and consumers are socially responsible in that they value...