We demonstrate the sensitivity of the location of downstream firms, engaged in sequential spatial competition, to the vertical structure of an industry where no downstream firm can produce all varieties demanded.

This analysis is a natural follow up of continued efforts to assess the consequences of cross-border mergers in industries with a vertical structure. Absent free trade, in a vertically related industry, the downstream firms will not choose the social optimum under spatial price discrimination...

In this paper, we re-examine the effects of equity control of multinational firms on resource allocation and national welfare in a model with rural-urban migration and urban unemployment. A large number of recipient (host) countries are developing countries with dual economies. We indicate,...

Outsourcing has become an increasingly contentious subject ever since N. Gregory Mankiw remarked in 2004 that outsourcing is just another way of doing international trade, and must be beneficial to the nation, including the workers. We construct a simple two-sector specific-factor model and...

This paper demonstrates how an interaction between ownership rules and trade policy provides a rationale for a host government to impose local equity requirement (LER) on a foreign multinational. It presents a model where, in the presence of an import tariff, LER can serve as an effective...