Recent contributions on offshoring often assume that firms can freely split their production process into separate … technologically determined sequence of production steps. In our model, cost savings from offshoring fluctuate along the production … from offshoring even if relocating individual steps would be advantageous. Conversely, small variations in model parameters …

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. -- offshoring ; trade in tasks ; unemployment ; search and matching …

, that induces offshoring, is not necessarily welfare-enhancing for consumers, despite the lower cost of labor in the South …