This paper investigates the effect of exchange rate variations on the equilibrium of an industry in which domestic firms are competing with foreign suppliers. The paper is designed as an expository survey. It discusses the perfectly competitive industry; exchange rate pass through under...

This paper analyzes trade policy in an integrated market in which two firms are price competitors. If tariff or export subsidies are in place, there is no equilibrium in pure strategies. The import tariffs and export subsidies give one firm a price advantage in one market. The effect of this is...

This paper develops a model of international trade between economies which each contain a monopolistically-competitive industry producing differentiated products under increasing returns to scale. Firms have larger shares in their domestic market than in their export market and the implications...

This paper analyzes a model of economic development in which international differences in industrial structure and income are caused by the agglomeration of industry in a subset of countries. Economic development may not be a gradual process of convergence by all countries but instead involve...

We consider a model with a large number of industries and agglomeration forces which cause each industry to concentrate in a single country. We show that the division of industries between countries is not unique, and that identical countries might have different numbers of industries and...

The authors study interactions between goods trade and international factor mobility in a context suggestive of transition in Central and Eastern Europe. If complementarities between skilled labor and capital are strong--e.g., owing to externalities between skilled labor and costs of absorbing...

This paper reviews recent literature on the spatial agglomeration of economic activity. This literature provides new ways of thinking about the determinants of the location of production, of trade flows, and of international income differences. Agglomeration of activity arises out of the tension...

The authors consider a Heckscher-Ohlin model in which goods and factors of production can be traded but trade involves transactions costs. Goods trade alone will not equalize factor prices, so there is an incentive for factors to move internationally. The authors characterize equilibria in which...

A monopolistically competitive manufacturing sector produces goods used for final consumption and as intermediates. Intermediate usage creates cost and demand linkages between firms and a tendency for manufacturing agglomeration. How does globalization affect the location of manufacturing and...