This paper provides a novel explanation for the dominant role of multinational corporations (MNCs) in international trade: after being acquired by an MNC, firms face lower trade frictions in and around the network of countries in which their parent has a presence. We provide a model of firms'...

This paper provides a new explanation for the dominance of multinational corporations (MNCs) in international trade: after being acquired by an MNC, firms face lower entry frictions in countries in which their global parent already has a presence. We provide a model of firms’ export and import...