This paper challenges the conventional academic view that international outsourcing is just another form of gainful … trade. Contrary to this view, we show that labor-service outsourcing can reduce the high-wage country's welfare even when …. Outsourcing's impact on welfare is worsened by a definite loss of jobs and a possible contraction in the range of varieties …

For what kind of intermediate input/service do firms often go outsourcing? This paper develops a model of two … to explain the patterns of outsourcing from the degree of product differentiation, economies of scope, and economies of … scale in production of the intermediate input relative to that of the final good. The recent surge of outsourcing activities …

This paper develops a model of strategic outsourcing. With trade liberalization in the intermediate-product market, a … domestic firm for a final good. This has a strategic effect on competition. Unlike the outsourcing motivated by cost saving …, the strategic outsourcing has a collusive effect that could raise the prices of both intermediate and final goods. Trade …