International Trade & Offshoring, Re-directed Foreign Direct Investment, and Decision Making

A new framework to analyze decision making for international trade-offshoring locations is proposed and then tested in terms of a key behavioral variable. The framework weaves together institutional theory and distinct decision making principles-concepts and offers a more realistic approach for examining offshoring decisions than now offered by the OLI paradigm and expected utility theory. In light of the emerging challenge presented by economic nationalism, the framework yields useful insights into the re-direction of foreign direct investment.