How Labour Markets Affect Trade Policies and Trade: The Case of the Foreign Labour Union

14 Pages Posted: 16 Aug 2003

See all articles by K. C. Fung

K. C. Fung

University of California at Santa Cruz

Abstract

This paper highlights the point that the presence of a foreign union affects significantly the characterization of domestic trade policies, and thus, trade. Specifically, both the objective functions of the foreign union and the nature of interactions between the foreign firm and the foreign union are important determinants of the sign and magnitudes of the domestic trade policies. The importance of the foreign union effect holds regardless of whether the domestic trade policies are politically motivated or whether they are set to maximize national welfare. The foreign union effect is also present with or without a domestic producer.

Suggested Citation

Fung, K.C., How Labour Markets Affect Trade Policies and Trade: The Case of the Foreign Labour Union. Available at SSRN: https://ssrn.com/abstract=416824

K.C. Fung (Contact Author)

University of California at Santa Cruz ( email )

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