Ekholm, Karolina; Forslid, Rikard; Markusen, James R. - 2022
other high-cost country. This occurs when trade costs for intermediates (components) and plant-fixed costs are moderate and … is trade liberalization between one of the high-cost countries and the small, low-cost country. The outside high …-cost country may wish to build a branch plant inside the free trade area due to market size, but chooses the low-cost country on …