This paper investigates outsourcing and foreign direct investment (FDI)decisions based on factor price differentials in North-South trade when the productionis fragmented into two independent processes.  It is shown that (a) when the Southern firm does not have the Northern firm-specific...

Cross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run...

This paper investigates outsourcing and foreign direct investment (FDI) decisions based on factor price differentials in North-South trade when the production activity is fragmented into two independent processes.  It is shown that (a) when the Southern firm does not have the Northern...

This paper considers the question of whether a country with the intermediate capital–laborratio is better off forming a free trade area with the higher or lower wage country. Typicalanalyses of gains from trade ignore the effects of free trade on factor prices. When Europe formsa free...

This paper investigates outsourcing and foreign direct investment (FDI) decisions in North–South trade under conditions of wage uncertainty. The North has a financial advantage to raise capital, but the South has the advantage of low wages. If the expected outsourcing cost is lower than...

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