production of one good is monopolized in each country, in order to investigate the role of the price normalization. We illustrate … several puzzling effects that occur if the price normalization is changed. However, we show that Markusen’s result on the … choice of the normalization rule. To overcome the price normalization problem in international trade we suggest to use the …

shareholders' utility is not sufficient to cancel the real effects of the price normalization. In order for an equilibrium to be … monetary rule. Hence, the introduction of money does not resolve the price normalization indetermination but transform it into …

maximize profits. This is due to the fact that changing the price normalization amounts to altering the objective functions of … the firms. Clearly, the objective of a firm must not be based on price normalization rules void of any economic content …

maximize profits. This is due to the fact that changing the price normalization amounts to altering the objective functions of … the firms. Clearly, the objective of a firm must not be based on price normalization rules void of any economic content …