Strategic trade and FDI policies in a unionized industry

Strategic trade and FDI policies in a unionized industry

Blog Article

This paper analyzes the differences voyage et cie discount code between strategic trade and the competitionm policies (in the form of inward Foreign Direct Investment) to regulate a unionized monopoly in the domestic country.With decentralized negotiations both policies reduce labour and product market distortions.However the hellfire sloe gin fixed cost for the foreign entrant and the degree of product differentiation determine which policy should be implemented to maximize national welfare, and the cases in which the domestic government can intervene, to achieve a Pareto-improvement.