This paper examines the impact of uncertainty on the profitability of vertical and horizontal foreign direct investment (FDI). Vertical FDI takes place when the multinational fragments the production process internationally, locating each stage of production in the country where it can be done...

Investigates the dynamic welfare effects of exposure to trade in a new trade model. This book uses a new trade model to explore which country-specific conditions give rise to horizontal or vertical multinational activity. It analyzes the role of goods trade and horizontal multinational firms in...