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(Figure: a Firm's Production with and Without Offshoring I) If

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(Figure: A Firm's Production With and Without Offshoring I) If component parts become relatively cheaper abroad, this firm will have an incentive: (Figure: A Firm's Production With and Without Offshoring I)  If component parts become relatively cheaper abroad, this firm will have an incentive:   A)  to offshore (import)  components and export R&D. B)  to import R&D products along with skilled workers. C)  to export both R&D and component parts. D)  to make few changes in the trading regime because of the delicate international balance.


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