We provide in this paper a survey of recent empirical evidence concerning the determinants of location choices by multinational firms for their production affiliates. While the concerns about delocation/offshoring of manufacturing activities have been dominated by the belief that low production...

This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are possible: (i) one with unilateral FDI, where one firm is...

For several decades, multinational enterprises (MNEs) have offshored their manufacturing activities to low-cost countries to achieve significant productivity gains. However, changes in the relative competitiveness of countries, social effects of deindustrialization in advanced economies and the...