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The Global Factory
Foreign Assembly in International Trade
Authors:
|
Publisher:
2011
Summary
Since the early 1960s exports of manufactures from developing countries have grown rapidly. Widening gaps between the wages of rich and poor countries, coupled with dramatic declines in transportation costs and increased technological capabilities, led to this growth. Production of labor-intensive goods in newly industrializing economies became a significant factor in work markets. Industrial country firms responded to this situation by integrating production processes were transferred abroad to countries with an abundance of cheap labor, while technologically advanced components were supplied at home. In this book the authors evaluate the positive and negative aspects of foreign assembly and suggest ways in which it may develop and affect the future of North-South relations. They examine in detail the U.S. semiconductor industry, the first to go abroad on a large scale. They also chart the development of the semiconductor industries of Western Europe and Japan, and show the strengths and weaknesses of the various policy alternatives available in this rapidly growing, highly competitive industry. In other chapters they present case studies of the assembly industries in Mexico, Haiti, and Colombia. Mexico, which shares a 2,000-mile border with the United States, is the most important partner of the United States in assembly activities abroad. Haiti, one of the poorest countries in the world, has received a strong economic stimulus from assembly. The explosive growth of Colombian assembly for the U.S. market came as that country rose to be the fifth largest industrial producer in Latin America. The book concludes with an overview of the domestic political, social, and economic effects of the reorganization of industry abroad and a summary of the policy implications, both for the United States and for the developing countries that are its manufacturing partners.
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Bibliographic data
Copyright year
2011
ISBN-Print
978-0-8157-3303-4
ISBN-Online
978-0-8157-1618-1
Publisher
Rowman & Littlefield, Lanham
Language
English
Pages
259
Product type
Book Titles
Table of contents
ChapterPages
Contents No access
The International Reorganization of Production No access
Basic Questions No access
Assembly Abroad and the United States No access
Intrafirm Trade No access
Foreign Assembly in Europe and Japan No access
Appendix: Explanation of Items 806.30 and 807.00 No access
Semiconductors and Their Importance No access
Semiconductor Economics No access
The Effects of National Industrial Policy No access
The Internationalization of Semiconductor Production: The United States No access
Foreign Assembly of Semiconductors in Western Europe and Japan No access
The Effects on the U.S. Economy No access
Effects of Foreign Assembly on Developing Countries No access
Conclusions No access
Appendix A: Estimating Growth in Foreign Assembly No access
Appendix B: Estimating the Price Elasticity of Semiconductor Demand and the Cost Advantage of Assembly Abroad No access
The Importance of Assembly Plants to Mexico No access
Characteristics of the Assembly Industry No access
The Main Issues of Assembly Operations in Mexico No access
The Importance of Assembly Production in Haiti No access
Characteristics of Assembly Operations in Haiti No access
Conclusions No access
Appendix: A Note on the Sample Surveys Used No access
Characteristics No access
What Happened? No access
Conclusions No access
Production Abroad and the Industrial Countries No access
Assembly Production and Developing Countries No access
U.S. Policies No access
Policy Implications for Developing Countries No access
