We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … subsidy may improve welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because …

In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm's employment decision in its domestic and offshore production. In this environment, offshoring is driven by …

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 …

substantial and systematic: the poorer a country, the more its income tends to be overestimated. Consequently, international …

programs and the benefits of international antitrust cooperation between agencies. When international antitrust prosecution is …