This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

increasing offshoring activity increases competition in the final goods market, leading to a progressive vertical disintegration … of the supply chains. Initially, the firms that decide to explore offshoring potential choose integration. As competition …

firms that are consistent with stylized facts from the recent empirical literature. -- multinational firms ; outsourcing … ; intra-firm trade ; offshoring ; vertical FDI …

procurement, or offshoring, offers significant direct cost savings vis-à-vis in-house production. Historically, offshoring was … area that has witnessed explosive growth is the Knowledge Process Offshoring (KPO) industry comprising services such as … analyses, among others. While the main rationale for offshoring knowledge based services centers on direct cost advantages …

The concept of offshoring of professional services first gained attention slightly over 25 years ago. At that time, US … labor aspects of offshoring and its direct impact on employment opportunities in the countries involved. This paper broadens … this perspective by emphasizing that the key drivers for offshoring will be strategic, not economic, over time. A formal …