The International fragmentation of production processes is of rising importance. One part of this fragmentation involves the relocation of a production process from a home- to a new host country. This literature survey deals with the effects of such relocations on the home country. First of all, we try to conceptualize the terms and definitions most frequently used in this context which are "outsourcing", "offshore outsourcing" and "offshoring". Despite the fact that there is little textual documentation dealing directly with the phenomena of offshoring and offshore outsourcing we try to give an overview of possible empirical literature to which one can regard to. Including FDI literature we try to cover empirical literature which can provide helpful insight on the effects of a relocation to foreign countries on the home country in connection with wages, skill upgrading, prices, profits, taxes and unions. (author's abstract) / Series: Discussion Papers SFB International Tax Coordination