@techreport{NBERw6483,
 title = "Multiproduct Multinationals and Reciprocal FDI Dumping",
 author = "Richard E. Baldwin and Gianmarco I. P. Ottaviano",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "6483",
 year = "1998",
 month = "March",
 URL = "http://www.nber.org/papers/w6483",
 abstract = {The global pattern of foreign direct investment (FDI) is quite similar to the world trade pattern.  In particular, intraindustry FDI between rich nations is almost as pervasive as intraindustry trade among rich nations.  In the  standard' MNC model (of Markusen, Venables, Brainard, and others), FDI is driven by a tradeoff between proximity and scale, so firms typically supply the foreign market via exports or via FDI.  The close correlation of two-way trade and investment flows is therefore difficult to explain with the standard model. We propose a model of multiproduct MNCs where firms simultaneously engage in intraindustry FDI and intraindustry trade.},
}