paper is motivated by recent evidence that trade has greatly expanded on the extensive margin (aka fragmentation, vertical … specialization, offshoring) by adding newly traded goods and services and that much of this new trade is in intermediates. I provide … results in interesting subtleties as initially-traded goods change their trade status following fragmentation. I illustrate …

–South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher … Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply a decrease in the ratio …

competition and two-way offshoring and to integrate theoretical results of the early offshoring literature. …

stages is bounded only by the fragmentation of the underlying engineering process, and lower frictions monotonically increase …