This paper exploits a unique offshoring survey to show that firms continue domestic production of the same goods they …. Firms' reactions also motivate a new offshoring measure - produced- good imports - that is readily observed in most firm …

integration of commodity markets (i.e., free trade) and international integration of factor markets (i.e., offshoring). In a two …-country, two-good, two-factor model we show that free trade and offshoring have opposite effects on rich-country workers. Free … trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while …