Blonigen and Feenstra (1996) look at the dynamic impact of a creation of a RIA, where it
may act as a protectionist ‘threat’ against non-members and push MNCs to anticipate
establishment into the bloc in order to avoid potential higher tariffs when exporting into it.
A similar result is reached by Donnenfeld (1998), who constructs a model based on noncooperative
games, where the existence of MNCs may modify the optimal trade policy of