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Simplest Model of Cross-Border Mergers and Acquisitions: The next two questions ask you to use the model to analyze the impact of changes in trade
Simplest Model of Cross-Border Mergers and Acquisitions: The next two questions ask you to use the model to analyze the impact of changes in trade costs on the volume of greenfield and cross-border M&A from Home into Foreign. For both questions assume that the initial equilibrium is one in which both greenfield and M&A are observed. Explain using the relevant equations and graphs. Ignore any indirect effects through demand level A
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