The impact of currency risk on international outsourcing

The paper considers the impact of currency risk on economic systems based on international outsourcing. The theoretical basis for constructing a model of the economic system based on international outsourcing, as well as economic speculative currency risk, is presented. The authors propose and describe a model of the impact of currency risk on economic systems based on international outsourcing. Mathematical modeling, as well as mathematical and graphical analysis of indicators characterizing the impact of currency risk are carried out. The results reflecting the impact of currency risk on a particular participant of the economic system, as well as on the system as a whole, under various particular conditions, are presented. The authors point out that currency risk in economic systems based on international outsourcing is expressed, not only explicitly, but also covertly through changes in the volume of production, cost and price of final value. Based on the modeling, general and specific criteria for the qualitative assessment of currency risk in international outsourcing are proposed. The results of the study can be used by organizations that are part of economic systems based on international outsourcing, regardless of the management approach and the mechanism for forming an economic system based on international outsourcing.

TYPES OF INTERNATIONAL OUTSOURCING.

The paper presents two of the most common approaches to defining the types of international outsourcing. The most common classification of international outsourcing on a territorial basis is presented. Based on the study of the types of international outsourcing, the author concludes that this classification is not universal.

FORMS AND TYPES OF INTERNATIONAL OUTSOURCING

The article is a clarifying study based on the results of the author’s earlier exploratory research. The types and forms of international outsourcing are considered, reflecting the internal structure of international outsourcing and interaction between participants in international outsourcing. The author proposes new classifications of types and forms of international outsourcing.

Entry-Mode Selection and Firm’s Productivity across Market Destinations: An Empirical Investigation

This work aims at investigating the productivity premia of three alternative modes of internationalization for a panel of Italian manufacturing firms: FDI, international outsourcing, and exporting. By using simple regression tests we try to investigate whether and to what extent these modes of firm‘s entry into the foreign markets increase the productivity of firms at home. Surprisingly, our findings show that firms that self-select in engaging in exporting have the greatest productivity gains. The findings hold true even when we extend the analysis to geographical country penetrations.

Labour Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys

We study preferences for government action in response to layoffs resulting from different types of labour-market shocks. We consider: technological change, a demand shift, bad management and three kinds of international outsourcing. Support for government intervention rises sharply in response to shocks and is heavily biased towards trade protection. Trade shocks generate more demand for protectionism and, among trade shocks, outsourcing to a developing country elicits greater demand for protectionism. The ‘bad management’ shock is the only scenario that induces a desired increase in compensatory transfers. Trump supporters are more protectionist than Clinton supporters, but preferences seem easy to manipulate: Clinton supporters primed with trade shocks are as protectionist as baseline Trump voters. Highlighting labour abuses in the exporting country increases the demand for trade protection by Clinton supporters but not Trump supporters.