This paper examines whether a Northern firm prefers to export or to engage in FDI to serve the South. If the firm engages in FDI, its technology is imitated, and a Southern firm enters the market that may sell in both markets. The Northern firm may invest to prevent product piracy in the North....

This paper examines whether a Northern firm prefers to export or to engage in FDI to serve the South. If the firm engages in FDI, its technology is imitated, and a Southern firm enters the market that may sell in both markets. The Northern firm may invest to prevent product piracy in the North....

This paper analyzes and compares differences in policy implications between import tariffs and antidumping (AD) duties in the presence of dumping under free trade. We present a vertical differentiation model of international trade in "like" products under duopolistic competition, allowing for...