core functions provided the cost of outsourcing is not too high. In this paper, we build a model to show how contraction in … out to say, India (abroad). We identify the conditions under which switching from pure domestic production to outsourcing …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality … restricted to differentiated final goods with a world with trade in both final goods and production tasks. -- offshoring …

Feenstra and Hanson (1997) have argued in the context of the North American Free Trade Agreement that US outsourcing to … skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland. In Austria …. In both countries outsourcing contributes roughly 35 percent to these changes in the relative wages for skilled workers …