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We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10010277412
We analyze a model that focuses on the export/outsource decision. Outsourcing has the advantage of providing better … technology embodied in the local capital. The decision of whether to offer an outsourcing contract weighs these two effects … against each other. The host country accepts the outsourcing contract if the higher price they pay for the outsourced good is …
Persistent link: https://www.econbiz.de/10010264307
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the indirect … outsourcing of the less important supplier is chosen in equilibrium. We also consider an open economy setup where the producer …
Persistent link: https://www.econbiz.de/10010282060
In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade … offshoring, and it is only at that level that further economic integration will lead to both wage moderation and offshoring … activities. Therefore, our analysis suggests that rather than provoking a downsizing of the welfare state, offshoring defines an …
Persistent link: https://www.econbiz.de/10010270554
their HQs so as to spread their different HQs functions over several locations around the world. The literature on the … that the competition between (potential) locations for HQ functions will rise. -- Internationalisation ; corporate …
Persistent link: https://www.econbiz.de/10003892880
effects. On the other hand, when looking at the effects of offshore outsourcing, the results are ambiguous …. -- internationalisation ; FDI ; outsourcing offshore ; employment ; labour market …
Persistent link: https://www.econbiz.de/10003746612
Feenstra and Hanson (1997) have argued in the context of the North American Free Trade Agreement that US outsourcing to … skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland. In Austria …. In both countries outsourcing contributes roughly 35 percent to these changes in the relative wages for skilled workers …
Persistent link: https://www.econbiz.de/10010261383
Casual observation suggests that cultural differences play an important role in business transactions, yet systematic evidence on this relationship is scarce. This paper provides a novel investigation of the effect of cultural distance on multinational firms’ decisions to integrate their...
Persistent link: https://www.econbiz.de/10014346366