• 1 Introduction
  • 2 The model
  • 2.1 Consumers
  • 2.2 Firms
  • 2.3 Governments
  • 3 Equilibrium taxes and location
  • 3.1 Benchmark: Symmetric countries
  • 3.2 Differences in country size
  • 4 Economic integration and national welfare
  • 5 Domestic pro¯t income and distortionary taxes
  • 6 Discussion
  • 7 Conclusion