Much of the modern long-run theory of international trade derives from what has come to be called the 2 x 2 or HeckscherOhlin model of production; and the rest of the theory derives from straightforward extensions of that model achieved by the accommodation of additional factors and products and...

This paper examines optimal trade and privatization policies in a mixed duopoly in which a pubic home firm competes with a more efficient foreign firm. The home firm is a Cournot competitor or a Stackelberg leader. The home government chooses the degree of privatization and import tariff to...