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market size. The union sets wages in function of the firm level labour demand elasticity and the responsiveness of firms to … relocate internationally. If countries are suffciently symmetric lower foreign wages and lower trade costs necessarily lead to … countries it holds that small increases in market size or trade costs makes union wages more sensitive to the foreign wage level. …
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We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
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We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
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