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dc.contributor.authorSchwarz, Christianen_US
dc.contributor.authorSuedekum, Jensen_US
dc.date.accessioned2011-09-20en_US
dc.date.accessioned2011-11-23T11:35:32Z-
dc.date.available2011-11-23T11:35:32Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/51793-
dc.description.abstractWe develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value chain, ii) if the supplier of each component is an external contractor or an integrated affiliate, and iii) if the supplier is offshored to a foreign low-wage country. Afterwards we consider a related scenario where the headquarter contracts with a given number of two asymmetric suppliers. Our model is consistent with several stylized facts from the recent literature that existing theories of multinational firms cannot account for.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5305en_US
dc.subject.jelF12en_US
dc.subject.jelD23en_US
dc.subject.jelL23en_US
dc.subject.ddc330en_US
dc.subject.keywordmultinational firmsen_US
dc.subject.keywordoutsourcingen_US
dc.subject.keywordintra-firm tradeen_US
dc.subject.keywordoffshoringen_US
dc.subject.keywordvertical FDIen_US
dc.titleGlobal sourcing of complex production processesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn668563044en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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