Two additional aspects are considered beyond the standard general equilibrium setting with production under uncertainty. Firstly, sequential production forces firms to forecast future demand, produce in advance, and store inventory. Secondly, firms face a location decision, locating near...

Recent decades have seen the emergence of global value chain (GVC) production arrangements in which firms fine-slice production processes and disperse activities over multiple countries. This paper analyses how the rise of GVCs affects trade politics in developed countries. Our theoretical model...