Naylor, Robin; Santoni, Michele - In: The Journal of International Trade & Economic Development 12 (2003) 1, pp. 1-18
We derive the sub-game perfect Nash equilibria for the foreign direct investment (FDI) game played between two unionized firms. We show that FDI is less likely, ceteris paribus, the greater is union bargaining power and the more substitutable are the firms' products in the potential host...