inflation-prone Periphery Countries that use an exchange rate peg as an anti- inflationary device, when the Center is hit by an … aggregate demand shock. Cooperation in the Periphery is constrained to be symmetric: costs and benefits must be equal for all …. The first is when the constrained cooperative response of the Periphery is a moderate common devaluation while the non …

possibility that freer trade also alters the firm-size distribution via international firm migration (offshoring); firms must, by …

We propose a theory of task trade between countries that have similar relative factor endowments but may differ in size … be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the … highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are …

The rise of offshoring of intermediate inputs raises important questions for commercial policy. Do the distinguishing … features of offshoring introduce novel reasons for trade policy intervention? Does offshoring create new problems of global … perform in a world where offshoring is prevalent? In this paper we provide answers to these questions, and thereby initiate …

offshoring in the short run and in the long run (when technology levels are endogenous). The short-run analysis shows that when … research efforts in response to increased offshoring. In particular, the rich country always gains from increased fragmentation …