production process into many geographically separated steps. This phenomenon is commonly known as "foreign outsourcing" and it is … the outcome of globalization of the world economy in the last two decades. This paper develops a general equilibrium model … that features the North's outsourcing to the South, with 3 countries (2 in the North and 1 in the South) and three goods …

-house offshoring to China is a major determinant of Dutch import growth from China. Dutch firms tend to offshore production in …