firm-specific input suppliers when the final goods producers undertake complete outsourcing or bi-sourcing. Under complete … outsourcing, the final goods producers locate closer as the distance between the input suppliers decreases, but the distance … the final goods producers, and creates effects which are opposite to those under complete outsourcing. Thus, our results …

increasing offshoring activity increases competition in the final goods market, leading to a progressive vertical disintegration … of the supply chains. Initially, the firms that decide to explore offshoring potential choose integration. As competition …