NBER WORKING PAPER SERIES TRADE AND PROTECTION WITH MULTI—STAGE PHODUCTION Avinash Dixit Gene M. Grossman Working Fper No. 194 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge MA 02138 November 1981 We would like to thank Alan Deardorff, Jonathan Eaton and Jean Baldwin Grossman for comments on a previous draft. This paper was presented at the 1981 NBER Summer Institute, Workshop in International Economics. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research.