Managing Transaction Costs in International Production; Evidence on Entrepreneurship from Case Studies in The Netherlands

This era of globalisation is characterized by an ongoing international fragmentation of production where the supply chain is split up in more and more parts. The traditional Ricardian theory of trade in products governed by comparative advantages is replaced by a modern theory of trade in tasks. This trend requires new entrepreneurial skills in the organisation of production. Tasks are outsourced to those places in the world where the lower production costs outweigh the additional transaction costs associated with the fragmentation of production. This managing of transaction costs, which we la... Mehr ...