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In recent decades, advances in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages. A key decision facing firms worldwide is the extent of control to exert...
Persistent link: https://www.econbiz.de/10013014670
Critics of globalization claim that US manufacturing firms are being driven to shift employment abroad by the prospects of cheaper labor. Others argue that the availability of low-wage labor has allowed US based firms to survive and even prosper. Yet evidence for either hypothesis, beyond...
Persistent link: https://www.econbiz.de/10012760794
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...
Persistent link: https://www.econbiz.de/10013022167
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …
Persistent link: https://www.econbiz.de/10013225805
outsourcing decisions are affected by changes in country and competitor costs. A number of interesting regularities emerge. When a … developed countries. In many cases, the measured responses to cost changes appear to correspond with outsourcing theories that …
Persistent link: https://www.econbiz.de/10013237294
There exist two approaches in the literature concerning the multinational firm's mode choice for foreign production between an owned subsidiary and a licensing contract. One approach considers environments where the firm is transferring primarily knowledge-based assets. An important assumption...
Persistent link: https://www.econbiz.de/10013214625
In this paper, we develop a simple model of international outsourcing and apply it to processing trade in China. We …
Persistent link: https://www.econbiz.de/10013228044
Slaughter (1993), in this paper I try to determine the extent to which outsourcing by multinational corporations contributed to … firms. I find that most of these facts are inconsistent with widespread outsourcing. Second, to test more rigorously whether … and in fact may be price complements. Taken together, these findings indicate that multinational outsourcing contributed …
Persistent link: https://www.econbiz.de/10013228982
We report a puzzling pair of facts concerning the organization of science. The concentration of research output is declining at the department level but increasing at the individual level. For example, in evolutionary biology, over the period 1980 to 2000, the fraction of citation-weighted...
Persistent link: https://www.econbiz.de/10013062172
This paper provides firm-level evidence that credit constraints restrict international trade flows and affect the sectoral pattern of multinational activity. Using detailed customs data from China, we show that foreign affiliates and joint ventures have better export performance than private...
Persistent link: https://www.econbiz.de/10013127980