CHU-PING LOGuang-Jong Fann2020-02-052020-02-0520101468-4330https://scholars.lib.ntu.edu.tw/handle/123456789/453410In Antràs and Helpman's (2004) model, the most productive firms refer foreign direct investment (FDI) to international outsourcing in their lobalisation strategy. This paper adds Griliches's production function to Antràs and Helpman's (2004) model in order to determine how an endogenalized headquarter services reshape firms' global organisational structures. We argue that while an intensive headquarter services help reduce incomplete contract distortion, the most productive firms with a sufficiently high headquarter service intensity may prefer international outsourcing to FDI. Copyright © 2010 Inderscience Enterprises Ltd.Enterprise development; FDI; Foreign direct investment; Headquarter service; International outsourcing[SDGs]SDG10journal article10.1504/IJMED.2010.0361192-s2.0-77958541939https://www2.scopus.com/inward/record.uri?eid=2-s2.0-77958541939&doi=10.1504%2fIJMED.2010.036119&partnerID=40&md5=1a7c732f3e314ae61f6e2e1902795596