E. Kwan Choi

Trade and the adoption of a universal language

This paper investigates long run consequences of international trade between two economies inhabited by two distinct races using different languages. If wages are not equal in autarky, free trade encourages the workers of the low-wage country to learn the language of the high-wage country. As the bilingual population increases in the low-wage country, products are increasingly produced in the dominant language version. In the long run the language of the high-wage country becomes universally adopted.

International trade in branded and generic products

This paper investigates international competition between an innovating firm in a developed economy and generic producers in developing countries. Initially, the innovating firm in a developed country exports the branded product to a developing country. Once a patent expires or when the government grants a licence to local firms to produce generic equivalents, the innovating firm is forced to compete with generic producers. Under certain conditions, entry of generic firms reduces the price of the branded product and a generic competition paradox does not occur. There are two possible long‐run equilibrium solutions. In one scenario, the innovating firm which exports the branded product and the local generic producers may coexist in the developing country. In the other scenario, the brand producer exits and a trade reversal may occur, that is, the developing country may even export the generic products to the developed economy.