In a framework of a unionised international Bertrand duopoly with differentiated products, this paper analyses national labour market interdependencies and the consequences of trade liberalisation for union wages. The analysis suggests that national wages are likely to be strategic complements...

This work analyzes the difference between trade policy and competition policy for prices, wages, employment and national welfare when both product and labor markets are imperfectly competitive. Trade and competition policies have different impact on the domestic labor market when it is...