It would not take a long time for a firm to determine factory fs location when the firm fs production activity was almost confined in a country. While, in the globalized economy a firm takes a series of steps to decide factory fs location since spatial range of a firm fs production activity is...

This paper analyzes effects of the corporation tax rates of countries on firms f location selections using the transfer pricing system. Reduction of transportation costs makes firms f production activities expand to across international borders. This expansion incurs harsh price competition...