Multinational Firms and the Theory of International Trade and Investment: A Correction and a Stronger Conclusion
修正了Batra和Ramachandran论文中比较静态分析的数学错误，并证明关税对跨国资本租金的影响有更强的结论。
In a recent article in this Review, Raveendra Batra and Rama Ramachandran showed that the traditional models of international trade can preserve most of the attributes introduced by multinational firms. As part of their exposition, they conducted a comparative statics analysis to explore the implications of taxes and tariffs on resource allocation and international capital movement. The purpose of this paper is to correct some of the comparative statics results. In Section I, I show some mathematical errors in Section IV of their paper. Making these corrections leads to some quantitative changes in their results even though their conclusions are still valid. In Section II, I will show that some stronger results follow so far as the implications of tariffs on the rental on multinational capital is concerned.