DETERMINANTS OF OFFSHORE ASSEMBLY IN DEVELOPING AND DEVELOPED-COUNTRIES

This paper identifies industry-specific characteristics which-influenc e the likelihood a particular U.S. industry will take advantage of off shore assembly provisions in the U.S. tariff code by establishing prod uction facilities in either developing or developed countries. The dec ision to use offshore assembly operations is shown to be influenced by comparative advantage forces, policy-oriented and natural trade barri ers, and by the degree of import competition in the home market.