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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 …
Persistent link: https://www.econbiz.de/10013332242
This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are...
Persistent link: https://www.econbiz.de/10014025384
We present a North-South model of international trade in which differentiated products are developed in the North. Sectors are populated by final-good producers who differ in productivity levels. Based on productivity and sectoral characteristics, firms decide whether to integrate into the...
Persistent link: https://www.econbiz.de/10014082766
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We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...
Persistent link: https://www.econbiz.de/10010213481
South. Offshoring to South however is subject to costly communication reflected by partially incomplete contracting. More …
Persistent link: https://www.econbiz.de/10011547846
While the increased frequency of relocation of productive capacities to lower wage countries from developed economies has given rise to discussions concerning job losses and de-industrialisation, developments in the host countries of relocation have been widely neglected. Hungary, together with...
Persistent link: https://www.econbiz.de/10010252180
mode of entry. One type of this mode is offshoring which makes easier the relocation of business activity from developed … economies to developing economies. The study of offshoring activities is the focus of this paper, with the data coming from a … multinational firms to be engaged in foreign direct investment via offshoring. …
Persistent link: https://www.econbiz.de/10011512752
firms that are consistent with stylized facts from the recent empirical literature. -- multinational firms ; outsourcing … ; intra-firm trade ; offshoring ; vertical FDI …
Persistent link: https://www.econbiz.de/10009273125