Munich Personal RePEc Archive

Strategic Outsourcing under Economies of Scale

Chen, Yutian and Sen, Debapriya (2010): Strategic Outsourcing under Economies of Scale.

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Economies of scale in upstream production can lead both disintegrated downstream firms as well as its vertically integrated rival to outsource offshore for intermediate goods, even if offshore production has moderate cost disadvantage compared to in-house production of the vertically integrated firm.

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