A note on multinational corporations in a model of reciprocal dumping

Dei, Fumio

doi:10.1016/0022-1996(90)90070-3

Cited by 24 publications

(13 citation statements)

References 8 publications

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“…8. Dei (1990) introduces multinational firms in a model of reciprocal dumping. He shows that the location of multinationals is a function of transport costs.…”

Section: Although Under Current Wto Rules It Is Increasingly Difficulmentioning

confidence: 99%

Can Import Tariffs Deter Outward FDI?

Collie

Vandenbussche

2005

Open Econ Rev

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In this paper we analyze a country's optimal trade policy when its labor market is unionized and firms are footloose. We show that an important objective for governments to use import protection is to prevent their domestic multinationals to go to a non-unionized location abroad and to serve their country from a distance. A domestic government will set a positive tariff to dissuade its multinational from engaging in outward FDI when the additional profits it repatriates, do not compensate for the loss of domestic union rent. To put it differently, we show that when the domestic labor market is unionized, trade liberalisation between countries with similar wage levels is likely to result in domestic welfare losses as a result of outward FDI. Only when wage differences between countries are large enough, can outward FDI improve domestic welfare and optimal tariffs will be zero. Copyright Springer Science + Business Media, Inc. 2005FDI, monopoly union, trade policy, Cournot competition,

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“…8. Dei (1990) introduces multinational firms in a model of reciprocal dumping. He shows that the location of multinationals is a function of transport costs.…”

Section: Although Under Current Wto Rules It Is Increasingly Difficulmentioning

confidence: 99%

Can Import Tariffs Deter Outward FDI?

Collie

Vandenbussche

2005

Open Econ Rev

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“…In addition, transportation cost is assumed to be zero. 3 For analysis stressing fixed costs and transportation costs of FDI, see Dei (1990), Markusen and Venables (1998),…”

Section: Productionmentioning

confidence: 99%

Reverse imports, foreign direct investment and exchange rates

Xing

Zhao

2008

Japan and the World Economy

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This paper investigates systematic linkages among "reverse imports", foreign direct investment, and exchange rates. We have in mind the competition in the Japanese market of a Japanese multinational firm and a Chinese domestic firm. Products are differentiated based on Japanese consumers' brand name recognition. The model shows that yen appreciation leads to an increase in Japanese FDI in China and "reverse imports", and a decrease in Japanese domestic production. Due to the barriers in brand name, the exports of the Chinese firm may fall, because the increase of reverse imports may erode the market share of Chinese firm, even though total exports from China increase. Further, we find that yen appreciation may improve the profits of the Japanese firm and welfare in Japan under reverse imports, against conventional wisdom. The predictions of the model fit well with the actual figures, and shed light on the current, heated China debate. JEL Classification Number: F1

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“…Dei (1990) présente un modèle où, à l'équilibre, on observe des flux d'iDE croisés. Le modèle comprend deux firmes.…”

Section: Flux Croisés D'ideunclassified

“…toutefois si globalement leur impact semble positif, certains pays ou certaines catégories socioprofessionnelles peuvent voir leur situation se détériorer avec l'apparition des FMn. Cela peut être le cas des grands pays (Markusen et Venables, 1998;Dei, 1990). il semble donc que contrairement à l'idée courante, des petits pays, comme la suisse ou les Pays-Bas, ont beaucoup plus à gagner à une libéralisation des iDE que les états-unis.…”

Section: Localisation Endogèneunclassified

Des firmes multinationales : un survol de la littérature microéconomique

Jacques¹

2007

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Cet article propose une synthèse des travaux microéconomiques portant sur les firmes multinationales. On présente les coûts et les avantages pour les firmes d’investir à l’étranger. On s’intéresse ensuite au choix du mode de développement à l’étranger puis à l’impact sur le comportement des firmes de différentes mesures de politiques économiques.This paper surveys the microeconomic literature on multinational enterprises. It analyses the costs and the benefits for the firms of foreign direct investment. Then it studies how the firms invest abroad and the impact of some economic policies on foreign direct investment

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A note on multinational corporations in a model of reciprocal dumping

Cited by 24 publications

References 8 publications

Can Import Tariffs Deter Outward FDI?

Can Import Tariffs Deter Outward FDI?

Reverse imports, foreign direct investment and exchange rates

Des firmes multinationales : un survol de la littérature microéconomique

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