This paper extends the global sourcing model with informal labor, which spawns reputation and legal costs for violating the rules and regulations imposed on foreign firms regarding accessing informal labor under integration. Under these circumstances, foreign firms, facing a higher cost than...

The rapid rise in global fragmentation - foreign investment, global supply chains, and 'production sharing' - is fundamentally reshaping the multilateral trading system. This paper uses a simple economic modeling framework to understand how the global fragmentation phenomenon may reshape the...

The growing stock of foreign investments by sovereign wealth funds and state-owned enterprises poses regulatory challenges to the international investment regime. With arbitrators seemingly keen on expanding the jurisdictional scope of investment treaty arbitration to cover a wide range of...

As demonstrated by preliminary data released by the United Nations Conference on Trade and Development (UNCTAD), in 2012, global foreign direct investment (FDI) inflows declined by 18.3% - to as low as $ 1.3 trillion, which is practically the same as the level recorded over the crisis period....

The specter of a less-integrated world economy is real. The paper discusses to what extent trade protectionism and economic conflicts are affecting the composition and dynamism of foreign direct investment flows

Over the last three decades the global economy has expanded in a remarkable fashion. While nominal world GDP has increased four times, world bilateral trade flows have grown more than six-fold, and the stock of foreign direct investment (FDI) has grown by roughly 20 times since 1980. The sources...

We study the effect of the intellectual property rights (IPR) regime of a host country (South) on a multinational's decision between serving a market via greenfield foreign direct investment to avoid the exposure of its technology or entering a joint venture (JV) with a local firm, which allows...

Multinational enterprises (MNEs) are increasingly dealing with challenges shaped by the new geopolitical and trade environments. Besides traditional tariffs, exporting firms need to comply with regulatory non-tariff measures (NTMs) in the form of technical barriers to trade (TBTs) and sanitary...