Preference Bias and Outsourcing to Market: A Steady-State Analysis
By Ping Wang & Raymond G. Riezman, SSRN, February 1, 2008 (Paper can be downloaded from the website)
Outsourcing has the advantage of providing better information about local preferences. The disadvantage is that producing in the host country also means using inferior technology embodied in the local capital. The paper concludes that preference based outsourcing is more likely to occur with higher income host countries.
>> View Article | created on: 05/14/2008
