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Next,we investigated the role of the contracting environment

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Next,we investigated the role of the contracting environment.We characterized the legal setting in a country by the fraction of a relationship-specific investment that is verifiable to a third party.An improvement in the contracting possibilities in a country raises the relative profitability of outsourcing there,given the number of component producers in each country and the relative wage.But changes in the contracting environment also affect the demand for labour by component producers and final-good producers at a given wage.A global increase
in the fraction of contractible investment tends to favour outsourcing in the north,whereas an improvement in the legal environment of the south can raise or lower the volume of outsourcing there while raising outsourcing from the north.
Next,we investigated the role of the contracting environment
下一步,我们调查的承包环境的作用.我们的特点,在一个国家的法律环境的关系,具体的投资,是可验证的第三方的一小部分.在改善一个国家的承包可能性,提高外包的相对盈利能力,组件生产商在每个国家的相对工资.但在合同环境的改变也影响到组件生产商和最终良好的生产者在一个给定的工资对劳动力的需求.一个全球性的增加
在趋于缩小投资的一小部分外包有利于在北方,而在南部的法律环境的改善可以提高或降低外包量有来自北方的同时提高外包.