Barriers to Cross-Border Outsourcing

Eiichi Tomiura

Chapter Chapter 9 in Cross-Border Outsourcing and Boundaries of Japanese Firms, 2018, pp 193-225 from Springer

Abstract: Abstract This chapter examines the barriers to cross-border outsourcing, particularly impediments for Japanese firms related to differences in languages. Almost all the Japanese firms exclusively use the Japanese language for internal communications and business with other Japanese firms, but they normally have to use nonnative languages, often English, for outsourcing to foreign firms. Based on RIETI survey, we distinguish the firm’s FDI subsidiaries, subsidiaries owned by other Japanese firms, and foreign firms in order to investigate how entry barriers to outsourcing vary depending on the types of suppliers. Although not directly on outsourcing, this chapter also reports our research results on task content of Japan’s manufacturing trade. As cross-border outsourcing and international trade in tasks are tightly linked each other, we discuss how task content of Japanese trade changed. We highlight how a new mode of globalization, namely, cross-border outsourcing, affects Japanese firms, which are traditionally insulated from intense global competition by impediments at the national border.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advchp:978-981-13-0035-6_9

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DOI: 10.1007/978-981-13-0035-6_9

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