Helpman, Elhanan2009-12-171984Helpman, Elhanan. 1984. A simple theory of international trade with multinational corporations. Journal of Political Economy 92(3): 451-471.0022-3808http://nrs.harvard.edu/urn-3:HUL.InstRepos:3445092Using the idea that firm-specific assets associated with marketing, management, and product-specific R & D can be used to service production plants in countries other than the country in which these inputs are employed, I develop a simple general equilibrium model of international trade in which the location of plants in a differentiated product industry is a decision variable. The model is then used to derive predictions of trade patterns, volumes of trade, the share of intra-industry trade, and the share of intrafirm trade as functions of relative country size and differences in relative factor endowments.en-USJournal Article2009-12-1710.1086/261236