equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced …. I also explore trade policy implications and compare offshoring to migration …

, that induces offshoring, is not necessarily welfare-enhancing for consumers, despite the lower cost of labor in the South …. In addition, firms which use the supplier's component intensively, offshore their supplier in the South using outsourcing …

parameters may lead to a large increase in offshoring activities …

of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the … technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes … improvements in the technology of offshoring …