A Geographic Approach to International Economics

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ABSTRACT: This paper introduces a trade cost asymmetry into the Core-periphery model to

investigate the location effects of protection. Trade costs arise from the active choice of

governments. In the case of a country that can decide the level of barriers to imports without

retaliation by the other country, unilateral protection is shown to attract firms and to increase the

welfare of residents. Since all countries face a rational incentive to unilateral protection, noncooperative

behaviour may lead to an inefficient equilibrium with too much protection.

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关键词：Internation Geographic Economics National Approach Economics Approach Geographic