We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...

Most international commerce is carried out by multinational firms, which use their foreign affiliates for the majority of their foreign sales. In this paper, I examine the determinants of multinational firms' location and production decisions and the welfare implications of multinational...

The business literature and recent descriptive evidence show that exporting firms typically require the help of foreign trade intermediaries or need to set up own foreign wholesale affiliates. In contrast, conventional trade theory models assume that producers can directly access foreign...

Using the theoretical framework of global sourcing with firm heterogeneity, we examine determinants of inputs sourcing choices of manufacturing firms established in the EU countries. To this purpose, we combine information on the ownership structure and company accounts from the Orbis data set...

Investment regulations implemented by the US government as part of the response to COVID-19 have implications for capital flows. The objective of this paper is to analyse how these regulations affect FDI flows, the potential long-term consequences for the United States and developing economies....

This paper explores the effect of a potential joint-venture breakup on the level of technology transfer in a set-up with exploration-exploitation trade-offs in the presence of time compression costs. We consider a joint-venture relationship between a technologically advanced multinational firm...

Knowledge of cultural impacts helps project managers understanding of cultural perspectives of all stakeholders. Since cultural differences can become organizational performance barriers, it is important to consider how cultural dimensions can affect decision making. This paper uses the model...

This paper estimates the impact of economic conditions in foreign industries on the filing of antidumping petitions by US industries and the US government's decision in preliminary and final antidumping investigations. Exploiting cross-country variation in economic shocks in manufacturing, I...

Welfare gains from increasing product variety are an important source of the gains from international trade. Recent empirical studies have largely focused on measuring the gains from an increased variety of imports. Trade theory, however, suggests that international trade heavily affects the...

Findings from the literature suggest that previous estimates of the variety gains from trade are too small because of the imprecise measurement of the imported variety set under the Armington assumption. In this contribution, I use results from the literature on multi-product firms to obtain...