Economics of Offshoring

Course Outline

International Trade

Course (61 videos)

Economics of Offshoring

The economics of offshoring includes several different elements discussed in previous videos, including foreign direct investment, comparative advantage, the Heckscher-Ohlin Theorem, unbundling of the supply chain, and factor price equalization. Offshoring is another way to capture gains from trade. However, it's not that simple. Offshoring is a complex topic, and this video takes a look at several key questions, including: what is the difference between offshoring and outsourcing? Do wages go up or down because of offshoring? How does offshoring affect productivity gains? If no offshoring happens, will automation take its place? How would this affect wages? Are research papers more or less optimistic about offshoring now than they were 25 years ago?

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