In our globalized economy, information about the costs, benefits, and distributional consequences of lowering trade barriers is essential to policymakers trying to decide if a particular agreement should be supported. This research fills an important gap in our knowledge concerning the effects of reducing trade barriers when firms have some degree of monopoly power.
The increasing globalization of the world economy is a prominent area of public debate. Issues of interest include the following:
• The determinants of international trade and multinational activity
• The implications of international trade and multinational activity for welfare and the distribution of income
• The effects of trade liberalization on firm and aggregate productivity
• The organization of firm production activities around the world
• National trade policies and the World Trade Organization (WTO)
Many fear that climate change will have severe effects on the global economy, particularly through the threat to food production and farmers’ earnings. This research suggests that much of the potential harm could be avoided if farmers can switch their crops in response to changing relative yields.