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Fragmentation

Sven W. Arndt, Henryk Kierzkowski
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      "Fragmentation" is a term used in this volume to describe cross-border component specialization and production-sharing. Examination of recent trade data suggests that offshore sourcing of parts and components, as well as offshore assembly, are assuming an increasing role in the world economy. The theoretical implications of this type of specialization are examined in several chapters with the aid of both Ricardian and Heckscher-Ohlin trade models. Production is first deconstructed or "fragmented" into its constituent parts and activities, and then it is at this level that factor-intensities and technologies are calibrated. The implications of intra-product specialization and component trade are investigated under conditions of free, restricted, and preferential trade. The role of multinationals is explored and the importance of cross-border service-links among component activities is examined. Overall, extension of the principle of comparative advantage beyond products to the realm of parts and components is welfare-enhancing. Industries take advantage of offshore sourcing in order to reduce costs and increase competitiveness.
      Format: CONTRIBUTORS: Sven W. Arndt, Henryk Kierzkowski EAN: 9780199243310 COUNTRY: United Kingdom PAGES: WEIGHT: 540 g HEIGHT: 242 cm
      PUBLISHED BY: Oxford University Press DATE PUBLISHED: 2001-02-08 CITY: GENRE: BUSINESS & ECONOMICS / International / General, BUSINESS & ECONOMICS / Economics / Theory, BUSINESS & ECONOMICS / Industries / General WIDTH: 163 cm SPINE:

      Book Themes:

      Labour / income economics, Econometrics and economic statistics, International economics, Ownership and organization of enterprises

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      Sven W. Arndt is C.M. Stone Professor of Money, Credit and Trade and Director, The Lowe Institute of Political Economy, Claremont McKenna College; President, The Commons Institute for International Studies. He is also Managing Editor, "North American Journal of Economics and Finance".Henryk Kierzkowski is Professor of Economics at the Graduate Institute of International Studies in Geneva.
      "Fragmentation" is a term used in this volume to describe cross-border component specialization and production-sharing. Examination of recent trade data suggests that offshore sourcing of parts and components, as well as offshore assembly, are assuming an increasing role in the world economy. The theoretical implications of this type of specialization are examined in several chapters with the aid of both Ricardian and Heckscher-Ohlin trade models. Production is first deconstructed or "fragmented" into its constituent parts and activities, and then it is at this level that factor-intensities and technologies are calibrated. The implications of intra-product specialization and component trade are investigated under conditions of free, restricted, and preferential trade. The role of multinationals is explored and the importance of cross-border service-links among component activities is examined. Overall, extension of the principle of comparative advantage beyond products to the realm of parts and components is welfare-enhancing. Industries take advantage of offshore sourcing in order to reduce costs and increase competitiveness.
      Format: CONTRIBUTORS: Sven W. Arndt, Henryk Kierzkowski EAN: 9780199243310 COUNTRY: United Kingdom PAGES: WEIGHT: 540 g HEIGHT: 242 cm
      PUBLISHED BY: Oxford University Press DATE PUBLISHED: 2001-02-08 CITY: GENRE: BUSINESS & ECONOMICS / International / General, BUSINESS & ECONOMICS / Economics / Theory, BUSINESS & ECONOMICS / Industries / General WIDTH: 163 cm SPINE:

      Book Themes:

      Labour / income economics, Econometrics and economic statistics, International economics, Ownership and organization of enterprises

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      Sven W. Arndt is C.M. Stone Professor of Money, Credit and Trade and Director, The Lowe Institute of Political Economy, Claremont McKenna College; President, The Commons Institute for International Studies. He is also Managing Editor, "North American Journal of Economics and Finance".Henryk Kierzkowski is Professor of Economics at the Graduate Institute of International Studies in Geneva.

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