India’s automotive sector has grown tremendously in the post-liberalization period. The growing domestic market, increased export opportunities and greater emphasis of vehicle manufacturers on high-quality, innovative solutions have created a context for component suppliers to ramp up their...

In this paper, we propose the technological complexity of a product and the level of Intellectual Property Rights (IPRs) protection to be the co-determinants of the mode through which multinational firms purchase their goods. We study the choice between intra-firm trade and outsourcing given...