Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158993
Authors: 
Cordella, Tito
Vannini, Stefano
Year of Publication: 
1992
Series/Report no.: 
Quaderni - Working Paper DSE 150
Abstract: 
Strategic trade policy affects foreign-based furn's internationalization mode. In this paper, we endogenize market structure and tariff policy by considering a sequential game in which (i) a policy-maker maximizes national welfare, (ii) aforeign-based furn decides whether to supply the host-country market by exports orby activating a local plant, (iii) a local furn decides whether entering or not the domestic market, (in) both Gums choose output. We show that optimal tariff policy does no tallow for the existence of multinational enterprises at equilibrium (when transportation costs are neglected). Tile link between national welfare and fixed costs is fairly complex and counterintuitive results arise.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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