OFFSHORING AND OUTSOURCING: IMPLICATIONS ON THE INTERNATIONAL TRADE OF GOODS
Keywords:
Offshoring, outsourcing, international trade, global value chains, production fragmentation, competitiveness, cost efficiency.Abstract
This article examines the impact of offshoring and outsourcing on the international trade of goods within the context of global value chains and production fragmentation. The study analyzes how shifting production activities abroad, reducing operational costs, and relying on external suppliers influence trade flows, competitiveness, and the geographical distribution of industries. Empirical evidence shows that offshoring increases the volume of intermediate goods trade, enhances export capacity, and accelerates technological diffusion, while outsourcing significantly reduces production costs and strengthens firms’ positions in global markets. However, these processes also generate risks such as deindustrialization, labor market disruptions, and economic dependency in developing economies. The paper concludes with policy recommendations for optimizing the benefits of offshoring and outsourcing for sustainable international trade.
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