Outsourcing is an efficient way to reduce a company’s costs and is often necessary to remain competitive. However, the … practice has had its critics. This article summarizes the outsourcing debate that has been going on in the United States and …

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 …

firm-specific input suppliers when the final goods producers undertake complete outsourcing or bi-sourcing. Under complete … outsourcing, the final goods producers locate closer as the distance between the input suppliers decreases, but the distance … the final goods producers, and creates effects which are opposite to those under complete outsourcing. Thus, our results …