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appear to condition outsourcing decisions. The data for 1991-2000 show that U.S. overseas assembly imports were characterized … educated countries passed-through a much larger portion of their cost changes. In addition, the price of outsourcing imports … differential price responses suggest that information issues play an important role in the mediation of outsourcing relationships …
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This paper develops a model of global sourcing with culturally dissimilar countries. Production of final goods requires the coordination of decisions between the headquarter of a multinational firm and managers of their component suppliers. Managers of both units are assumed to have strong...
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