Export Experience Boosts Offshoring, Enhancing Firm Success and Market Stability.
Service inputs play a big role in the costs of exporting for companies. A study on French firms shows that those with more experience in exporting are more likely to get services from the same market. This is because firms become more confident in their export success over time. Companies tend to offshore services within their own boundaries rather than from outside sources as they gain more experience. When there are more difficulties in getting services between domestic and foreign markets, firms are more likely to offshore. Offshoring companies sell more, have less ups and downs, and are less likely to leave foreign markets.