This paper examines the relation between the multinational firm and the determination of international trade policy. At issue is whether the multinational firm exerts a protectionist or liberalizing influence on countries' national trade policies. Vertical integration appears quite...

We consider a country where a king assigns benefits in accordance with privilege determined by the population’s proximity to the throne. People have different relative advantages in seeking privilege and in productive activity. The nature of the contest for privilege determines whether, in...

The literature on quid pro quo foreign direct investment describes how unwarranted investment may be undertaken because of the endogeneity of trade policy. The quid pro quo is that foreign producers, who are exporters to the host economy, invest in return for a liberal trade policy. We describe...