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Modularization of products, modern computer and communications (C&C) technology and the emergence of broad markets for specialized subcontractor services have made far reaching and global distribution of production possible. The low wages of developing countries have been made available to the producers of the industrialized countries on a scale not seen before. To capture the potential gains from that wage difference through reorganizing production globally is, however, not easy and firms regularly make mistakes and outsource too far, having to recontract activities. Production can also be observed to have been moved to high wage countries from low wage countries. In fact, outsourcing to low wage countries is seen to take place simultaneously with insourcing of production within large firms concentrating some of their production to high income countries. Through interviews with 15 international firms based in Sweden we investigate the nature of production being both insourced to, and outsourced from Sweden from foreign subsidiaries or subcontractors in low wage new members of the EU and from other European countrie