STRATEGIC TRADE AND FDI POLICIES IN A UNIONIZED INDUSTRY

Strategic trade and FDI policies in a unionized industry

This paper analyzes the differences 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 MATTE CLAY negotiations both policies reduce labour and product market distortions.However the fixed cost for the foreign entrant and

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