01740cas a2200253 a 4500 AALejournalIMF000591 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846713 1018-5941 BD-DhAAL BD-DhAAL Grilo, Isabel. 'Globalization' and Relocation in a Vertically Differentiated Industry / Isabel Grilo, Tito Cordella. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper uses a vertical differentiation duopoly framework to analyze firms' relocation decisions, when the removal of trade barriers or restrictions on capital outflows or inflows ('globalization') allows them to serve the domestic market through foreign plants in low-wage countries. The relocation of the entire industry yields net welfare costs, but the relocation of one (and only one) firm, may be welfare improving. When the economy is 'high-(or low-) quality biased,' the relocation of the firm producing the high- (or low-) quality variant is preferred, on welfare terms, to that of other firms, if the wage differential is large enough. Mode of access: Internet Cordella, Tito. IMF Working Papers; Working Paper ; No. 1998/048 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/048/001.1998.issue-048-en.xml IMF e-Library