This volume is a collection of the author’s past and recent research. It concentrates on some topics that continue to be neglected in mainstream trade theory, but which have grown in empirical relevance as the decades have passed and allow us to broaden our world view. These include adding multinational firms and a major role for the demand side of general equilibrium to our conventional portfolio of models. Part I in the volume focuses on multinational firms and the incorporation of endogenous location and ownership choices into general-equilibrium trade models. A particular emphasis, repeatedly confirmed in empirical studies, is on horizontal firms that replicate activities across borders. Two chapters on the vertical integration versus outsourcing decision reveal the non-excludable property of knowledge-based assets. Part II focuses on the demand side of general equilibrium, arguing and showing empirically that non-homothetic preferences, which give an important role to per capita income, help explain many of the empirical puzzles that trade economists keep trying to explain only from the production side of general equilibrium. Part III is eclectic, but the chapters in this section share the common thread of showing how distortions and allowing trade in factors of production both modify traditional policy ideas and also create additional sources of gains from trade. Key Features: o The existing body of international trade theory is heavily weighted with an underlying world view that does not fit closely with empirical reality. This volume can be considered as a supplement to existing literature and textbooks, broadening our world view by examining neglected topics that are nevertheless of considerable empirical relevance. For example, existing literature is dominated by models of single-plant nationally-owned firms that serve foreign markets by exports. But total sales of foreign affiliates of US multinational are more than 2.5 times the value of all US exports. This motivates the fact that half the chapters in this volume concern multinational firms o Other dominant assumptions in existing literature ensure that the demand side of general equilibrium plays almost no role in international trade theory and empirics. But the attempt to explain things only from the production side of general equilibrium has led to the persistence of empirical puzzles that cannot be fixed. Five chapters of the book show that taking consumer preferences seriously adds considerable explanatory power to our conventional portfolio of models

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