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adopting an inefficient Brander and Spencer Brookings Institution consumer surplus Contagion cost under exporting distortion domestic firm domestic government domestic market domestic welfare equilibrium policy exporting and FDI exporting FDI exporting iff favor of modal FDI it equals FDI policy FDI subject firm opts firm under FDI firm's marginal cost foreign direct investment foreign firm adopting foreign firm's decision foreign firm's marginal foreign firm's mode fully-funded further Discussion Papers GATT government implements government is incapable government's equilibrium Hoekman identical under exporting implementing its optimal incapable of implementing inefficient mode International Economics investment policies Journal of International Markusen modal neutrality mode of supply moral hazard national treatment negotiate multilateral rules oligopolistic optimal import tariff optimal output tax optimal tariff opts for exporting order condition policy intervention produce Saggi Strategic trade policy tariff tF tax under FDI trade and FDI truly efficient mode welfare is higher world welfare zero