Strategic trade and FDI policies in a unionized industry

• Authors: Buccella Domenico
• Languages of publication: EN

Abstracts

EN

This paper analyzes the differences between strategic trade and the competition 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 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.

Keywords

EN

strategic trade policy, FDI policy, unionized markets.

• Publisher: Uniwersytet Ekonomiczny w Poznaniu. Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu
• Journal: Economics and Business Review
• Year: 2019
• Volume: 5 (19)
• Issue: 1
• Pages: 12-31

Dates

published

2019-03-22

Contributors

author

Buccella Domenico

• Department of Economics, Kozminski University, Jagiellońska Street, 57/59, 03-301 Warszawa, Poland

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Identifiers

DOI

10.18559/ebr.2019.1.2