This paper is a dynamic extension of the well-known theory of trade in tasks. In my model, a firm's offshoring decision … reduces the level of offshoring compared to a static optimization and that adjustment of offshoring volume with respect to … changes in offshoring costs or labor endowment is characterized by overshooting and subsequent movement toward a steady state …

reorganize to more decentralized management improving competitiveness of offshoring firms. We show further that offshoring of … level of decentralization and CEO wages of offshoring firms. In sufficiently open economies, however, managerial offshoring …