In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade … offshoring, and it is only at that level that further economic integration will lead to both wage moderation and offshoring … activities. Therefore, our analysis suggests that rather than provoking a downsizing of the welfare state, offshoring defines an …

This paper analyzes a North-South trade model with costly offshoring and equilibrium unemployment due to union wage … setting. Reductions in the amount of resources required in the offshoring process usually decrease employment, though the … opposite can happen at a low initial level of offshoring activity. If additional offshoring leads to a fall in the scale of …