01788cam a22002537 4500001000600000003000500006005001700011008004100028100002300069245013500092260006600227490004100293500001600334520067500350530006101025538007201086538003601158690005401194690010601248700002501354710004201379830007601421856003701497w5529NBER20140317145636.0140317s1996 mau||||fs|||| 000 0 eng d1 aMarkusen, James R.14aThe Theory of Endowment, Intra-Industry, and Multinational Tradeh[electronic resource] /cJames R. Markusen, Anthony J. Venables. aCambridge, Mass.bNational Bureau of Economic Researchc1996.1 aNBER working paper seriesvno. w5529 aApril 1996.3 aWe consider a trade model combining a 2x2x2 Heckscher-Ohlin structure, monopolistic competition, transport costs, and multinational corporations. We demonstrate how the mix of national and multinational firms that operate in equilibrium depends on technology and on the division of the world endowment between countries. Multinationals are more likely to exist the more similar are countries in both relative and absolute endowments. Where multinationals exist they reduce the volume of trade and raise world welfare (although not necessarily that of both countries). They also reduce the agglomeration forces that arise when international factor mobility is allowed. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF1 - Trade2Journal of Economic Literature class. 7aF2 - International Factor Movements and International Business2Journal of Economic Literature class.1 aVenables, Anthony J.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w5529.4 uhttp://www.nber.org/papers/w5529