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the level of intra-firm imports from Eastern Europe. They are also favoring outsourcing over offshoring. Low … alternative suppliers in Eastern Europe) are favoring offshoring over outsourcing. Tax holidays granted by host countries in …
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of intrafirm imports from that region. These factors also favor outsourcing over offshoring. In contrast, low … alternative suppliers in Eastern Europe) favor offshoring over outsourcing. Tax holidays granted by host countries in Eastern …
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The division of labor between and within countries is driven by two fundamental forces, comparative advantage and increasing returns. We set up a simple Ricardian model with a Marshallian input sharing mechanism to study their interplay. The key insight that emerges is that the interaction...
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