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When trade comes up in conversation these days, a favorite talking point by people who oppose it is, “But it causes so much inequality, which outweighs the benefits.” The refrain has spread like wildfire through the left and the right, through key national and global institutions, even among...
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Recent discussions of exchange rate determination have emphasized the possible role of foreign direct investment in influencing exchange rate behavior. Yet, there are few existing models of multinational enterprises (MNEs) and endogenous exchange rates. This article demonstrates that the entry...
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The elasticity of substitution between goods from different countries---the Armington elasticity---is important for many questions in international economics, but its magnitude is subject to debate: the "macro" elasticity between home and import goods is often found to be smaller than the...
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