The impact in terms of the magnitude and volatility of statistical indicators is especially visible in financial centres and small, very open economies where global firms are large relative to the size of the domestic economy. However, these factors are also increasingly relevant in understanding the external statistics of the aggregate euro area and other large economies.
In relation to measuring international trade, cross-border production arrangements, such as contract manufacturing, have considerable implications for concepts that are central to the b.o.p. and national accounts. [3] Such arrangements may involve foreign subsidiaries (offshoring) or an arms-length relationship with an unrelated company (outsourcing).