This book is the first book that provides comprehensive economic analysis of cross-border
outsourcing by Japanese manufacturing firms based on microdata. Previous literature on many
other countries has often been constrained by limited data availability about outsourcing but
research contained in this book exploits unique firm-level data and directly tests theoretical
hypotheses derived from new firm heterogeneity trade models. Productivity capital-labor ratio
and R&D intensity are examined at the firm level. While rich empirical results in this book
convince us how powerful the orthodox economic theory is in understanding Japanese firms
detailed firm-level findings combined with accessible and concise overviews of Japanese
international trade are widely informative for international economists experts of Japanese
society business strategists for offshoring and policy makers in both developed and
developing economies. This book further discusses how boundaries of Japanese firms
traditionally sheltered by language and cultural barriers are affected by outsourcing
decisions simultaneously crossing national borders and firm boundaries. The interpretations of
Japanese characteristics in outsourcing have deep implications for understanding drastically
changing Japanese business amid globalization.
