Recent work demonstrates the importance of developing high quality output in order to compete in export markets and other recent studies verify the prevalence of fixed and ongoing trade costs while participating in those markets. I consider the joint choice of quality and export promotion costs when trade relationships are subject to temporary disputes. When transparency is low and macroeconomi...

This paper analyzes the e¤ects of the formation of a regional trade agreement on the level and nature of multinational …rm activity. We examine aggregate data that captures the response of U.S. multinational …rms to the formation of the ASEAN free trade agreement. Observed patterns guide the development of a model in which heterogeneous …rms from a source country decide how to serve two foreign...