International fragmentation, or outsourcing, is often referred to as a distinctly novel feature in today's global … outsourcing targets for western European firms. Against this background this paper provides a policy-oriented discussion of cross … European point of view. Specifically, the paper idetifies conditions under which outsourcing is beneficial for a western …

fragmentation may cause a domestic welfare loss, because outsourcing takes place in discrete steps where it affords firms quasi … process of fragmentation caused by less costly outsourcing is beneficial for the domestic economy. …