<p>We formulate a reciprocal dumping model of Cournot competition, with international location choice in the presence of global common ownership. We theoretically examine how payoff interdependence caused by overlapping ownership such as common and cross ownership affects location and production choices, and resulting welfare. We find that positive payoff interdependence incentivizes firms to shift their location choices from cost- oriented to market-oriented location. This type of location shift enhances international location diversification and, as a result, promotes welfare-improving production substitution, which may ultimately enhance global welfare. The presence of market integration further reinforces the robustness of this main finding.</p>