, Case 2: L enters and M exports
, In this configuration, both firms produce with the same return (q = g n) and incur the same fixed cost (K), Case 5: L enters and M invests
, M will be called multinational even if it's a potential one
, This assumption is kept to simplify the analysis. Our main results are qualitatively unchanged when we suppose that the host-country wage is lower than the foreigncountry one
, The assumption of asymmetry between local and multinational firms with respect to their ability to train is supported by many empirical works (see the introduction)
, For example, we consider here the specificity of the training as a result of M's superiority in term of specific organization, specific technology and method of management. Moreover, this superiority is effective if
,
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