Grossman, Gene M.; Rossi-Hansberg, Esteban - 2012
The authors propose a theory of task trade between countries that have similar relative factor endowments and … which generates local spillovers. Tasks can be performed at home or abroad, but offshoring entails costs that vary by task …. In equilibrium, the tasks with the highest offshoring costs may not be traded. Among the remainder, those with the …