We develop a foreign investment attraction model in which the level of investment productivity in some potential host countries is not known to foreign firms (incomplete information). However, these countries can signal their attractiveness as investment sites through their corporate tax...

The situation of a home government facing political pressure from an exporting industry within its jurisdiction is considered. If a foreign government cannot directly observe such pressure, the home government has an incentive to understate it to induce foreign tariff reductions. In equilibrium,...

When a foreign firm enters a domestic market, either via exports or through foreign direct investment (FDI), one factor determining the most favourable entrance mode is the profitability of the market, which may not be directly observed by the foreign firm. If the domestic trade protection...