We have developed a simple oligopoly model in which foreign direct investment (FDI) decisions are determined in an endogenous fashion. There is a host oligopoly facing competition from a foreign oligopoly in the form of either foreign investment or exports. Then, we propose a multi-stage game to...

In this paper we analyze the possibility that temporary exchange rates shocks have persistent effects on market structure and trade flows (Le. hysteresis) when we consider a monopolistic competition market where firms established in different countries face sunk cost entry. Moreover we want to...