This paper first derives a formula for the optimal host country tariff for a monopolistic multinational enterprise, and clarifies the rationales for the trade policy for such a firm. Then, after deriving a formula for the optimal host country profit tax, the paper indicates that a combination of...

This paper investigates the consequences of exchange-rate uncertainty on international trade, investment, employments of labor, and product ion by competitive multinational firms. It is shown to be important w hether and how international trade is undertaken. The paper demonstra tes that...