This paper aims to explain why some consumers may rationally object to free trade. I describe a differentiated-goods economy in which agents differ in their preferences across categories of goods. Due to increasing returns in production the number of goods produced in a given category depends on...

This paper analyzes governments' choices between strategic export subsidies and free trade as a commitment when firms are free to enter or exit in response to these choices. Entry and exit is treated as a discrete process. Within the context of a four stage game, two types of equilibria emerge:...

International corporate tax system does not succeed very well in taxing the cross-border business of the multinational enterprises. Therefore, both the European Union (EU) and the Organization for Economic Cooperation and Development (OECD) have proposed several tax reforms. We recognize in this...

This paper develops a Cournot duopoly in which a domestic firm competes with a technologically more advanced foreign-owned firm on the home market.

This paper examines how United States' multinational enterprises (MNEs) spread their foreign activities among concurrent destinations. An econometric estimation of the share gravity model is presented to show that, unlike previous applications of the gravity model to the study of foreign direct...

International corporate tax system does not succeed very well in taxing the cross-border business of the multinational enterprises. Therefore, both the European Union (EU) and the Organization for Economic Cooperation and Development (OECD) have proposed several tax reforms. We recognize in this...

An interesting finding in recent research is that strategic considerations and collective bargaining structure often influence foreign direct investment. In this paper, I argue that the support for the decentralisation of collective bargaining may ba an optimal response by unions to the growing...

This paper investigates which factors determine a bank's decision to expand its activities abroad and what determines its choice of the countries to invest in. The empirical analysis is conducted using firm-level data on foreign subsidiaries for a representative sample fo nearly 2,500 OECD banks.