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Volume 5 (19) Number 1 pp. 12-31

Domenico Buccella

Department of Economics, Kozminski University, Warszawa, Poland.

Strategic trade and FDI policies in a unionized industry

Abstract:

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.

pub/2019_1_12.pdf Full text available in Adobe Acrobat format:
http://www.ebr.edu.pl/volume19/issue1/2019_1_12.pdf
Keywords: strategic trade policy, FDI policy, unionized markets

DOI: 10.18559/ebr.2019.1.2

For citation:

MLA Buccella, Domenico. "Strategic trade and FDI policies in a unionized industry." Economics and Business Review EBR 19.1 (2019): 12-31. DOI: 10.18559/ebr.2019.1.2
APA Buccella, D. (2019). Strategic trade and FDI policies in a unionized industry. Economics and Business Review EBR 19(1), 12-31 DOI: 10.18559/ebr.2019.1.2
ISO 690 BUCCELLA, Domenico. Strategic trade and FDI policies in a unionized industry. Economics and Business Review EBR, 2019, 19.1: 12-31. DOI: 10.18559/ebr.2019.1.2