@techreport{a717d1c091634d0582d7740cb234c133,
title = "Dundee Discussion Papers in Economics 197: 'Make-or-buy' in international oligopoly and the role of competitive pressure",
abstract = "We study how competitive pressure influences the make-or-buy decision that oligopolistic firms face between producing an intermediate component in-house or purchasing it from a domestic supplier. We model outsourcing as a bilateral relationship in which the supplier undertakes relationship-specific investments. A home and foreign firm compete in the home market. Firms{\textquoteright} mode of operation decision depends on cost and strategic considerations. Competitive pressure increases firms{\textquoteright} incentive to outsource. Consumer gains from trade liberalisation are enhanced when it leads to less outsourcing.",
keywords = "Outsourcing, Vertical integration, Trade liberalisation, Oligopoly",
author = "D. Leahy and C. Montagna",
year = "2006",
language = "English",
series = "Dundee Discussion Papers in Economics",
publisher = "University of Dundee",
number = "197",
type = "WorkingPaper",
institution = "University of Dundee",
}