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explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the … outsourcing and global sourcing is found to be much weaker. …
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threshold. Secondly, as the human capital gap increases, the probability for international outsourcing vis-à-vis intra …-firm trade increases. Finally, as opposed to conventional wisdom, our model shows the possibility of outsourcing inputs of a high …
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analyzing recent growth in intermediate goods. Three possible causes are posited for this growth: outsourcing, global sourcing … goods is especially strong. The outsourcing hypothesis receives also some support …
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Multinational firms (MNEs) accounted for 42 percent of US manufacturing employment, 87 percent of US imports, and 84 of US exports in 2007. Despite their disproportionate share of global trade, MNEs’ input sourcing and final-good production decisions are often studied separately. Using newly...
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This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are...
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