Book excerpt: International Economic Integration and Domestic Performance brings together the essays of Mary E Lovely focused on the relationship between international economic integration and domestic performance. It is a collection of sole-authored and co-authored papers that have been published in various scholarly journals over the last two decades. The first section considers the welfare effects and optimal design of retail sales taxes when consumers can avoid taxation by crossing jurisdictional boundaries. The second section highlights the role of scale economies in the design of industrial policies and as a determinant of firm location. The third section explores the influence of environmental policy on foreign investor's location decisions and the role of trade and technology on country's environmental regulation. The final section considers the determinants of wage differences, the attraction of low wages for foreign investors, and misallocations of labor in an emerging economy — China. The collection, taken as a whole, highlights the power of international factor mobility to determine domestic tax burdens, to influence welfare implications of domestic policy alternatives, and to influence the location of productive factors and their rewards.