search query: @author Ludema, R. D. / total: 2
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| Author: | Ludema, R. D. |
| Title: | Increasing returns, multinationals and geography of preferential trade agreements |
| Journal: | Journal of International Economics
2002 : MAR, VOL. 56:2, p. 329-358 |
| Index terms: | ECONOMIC GEOGRAPHY MULTINATIONAL COMPANIES RETURN ON INVESTMENT TRADE AGREEMENTS |
| Language: | eng |
| Abstract: | This paper uses a model of horizontal multinational enterprises to explore the relationship between transportation costs and trade policy cooperation. Tariffs have the effect of attracting foreign direct investment to the benefit of consumers in the host country. As transport costs fall, the incentive to impose tariffs falls and the benefits to cooperation rise. |
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