We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … subsidy may improve welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because …

outsourcing and the lowest in foreign vertical integration. We find that robot adopters fragment their production further by … probability of adoption intensifies the effects on outsourcing and weakens the effects on vertical integration. In contrast to …

In this paper, we incorporate offshoring of labor-intensive goods in a model with multi-product firms, and explore its … improvements in offshoring opportunities can affect the geographic organization of a firm and its product range. Multi … prospects for offshoring. We identify the cannibalization effect as an important transmission mechanism within multi …

Technological advance and improvements in communication technologies have facilitated the offshoring of jobs worldwide … countries that contain developing country labor content. We demonstrate that this pattern of offshoring can harbor a pro …