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Production
Sharing
Statistics
Tell The Story
By:
Ralph Watkins
Production
sharing is an important
aspect of globalization.
Also known as cross-border manufacturing networks, production
sharing occurs when the processes used to manufacture a good are
conducted in more than one country. Such rationalization of
production allows companies to reduce costs or to improve response
time, thereby becoming more competitive, increasing profits, or
both.
Major North American
production-sharing trade flows include the export of machinery,
components, and materials from the United States and the import of
assembled motor vehicles and auto parts from Canada and
Me
xico; apparel from the Caribbean
Basin and
Me
xico; and televisions, computer
hardware, and telecommunications equipment from
Me
xico. In addition, several global
electronics companies assemble semiconductors in
East Asia
from wafers fabricated in the
United States
. Although a growing number of
vehicles imported into the
United States
from
Asia
and
Europe
contain specialized U.S.-made parts, such parts remain a small
share...
...Continued
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