This study provides a simple, many-industry model of trade which emphasizes the interaction between cross-country technical heterogeneity (i.e., a Ricardian aspect) and monopolistic competition among producers of differentiated products (i.e., a Chamberlinian aspect) as determinants of trade...

This note proposes a three-country model of monopolistic competition that captures the role of time zones in the division of labor. The connectivity of business service sectors via communications networks (e.g. the Internet, satellite communications systems) is found to determine the structure...

We argue, in a model with trade and unemployment, that exogenous inflow of foreign capital may deliver the desired result when it flows to a protected intermediate-goods sector. Whether foreign investment should be directed towards an intermediate-goods sector or to a final-goods sector depends...

We show that international outsourcing and R&D by the outsourced firm may be either substitutes or complements. Outsourcing increases the R&D investment in small markets and in highly competitive product markets, whereas it decreases the R&D investment in large markets. If the outsourced firm...