Trading Task: A Simple Theory of Offshoring
By Gene M. Grossman & Esteban Rossi-Hansberg, Princeton University, October 31, 2006
For centries, most international trade involved an exchange of complete goods. But, with recent improvements in transportation and communications technology, it increasingly entails different countries adding value to global supply chain, or what might be called "trade in task." We propose a new conceptualization of the global production process that focuses on tradable tasks and use it to study how falling costs of offshoring affect factor prices in the source country......
>> View Article | created on: 06/26/2007
