This article focuses on two distinct facets of globalization: decrease in the trade costs of goods and the decline of communication costs between headquarters and production facilities. When the unskilled have about the same wage in two regions, decrease of these costs fosters the agglomeration...

Consider a model à la Koopmans-Beckmann involving two indivisible and interactive firms, as well as a continuum of workers. Firm 1 uses labor, while firm 2 uses labor and good 1 produced by firm 1; both goods 1 and 2 can be exported their output but good 1 cannot be imported. The land...