Brazil constitutes a globally vital but troubled economy. It accounts for the largest GDP in Latin America and ranks among the world's largest exporters of critical commodities including iron ore, soya, coffee, and beef. In recent years Brazil's global economic importance has been magnified by a...

How should multilateral trade policy be designed in a world in which countries differ in terms of market access and technology, and firms with market power differ in terms of productivity? We answer this question in a model of monopolistic competition in which variable markups increasing in firm...