Making Trade Work: Straight Talk on Jobs, Trade, and Adjustment

This report examines the benefits and challenges of developing an effective adjustment policy for workers who lose their jobs because of outsourcing or any other adverse effects of trade. The statement, approved by CED's Research and Policy Committee states, "The most important next step is to recognize that adjustment policy is vital to achieving free trade -- which, in turn, is vital to the nation's economic future." The statement concludes that America needs to develop the national will to devise and fund an adjustment policy that will get to "yes" on trade

The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing

Since 1960, only one new country, Brazil, has succeeded in delivering more than one civil jet per month. Otherwise, all the countries now offering world-class planes were established in aviation by the end of World War I. This being said, low-cost producers within several of the newly emerging markets have already acquired front-end manufacturing expertise as a direct result of industrial offset contracts and/or other forms of technology transfer. In all such cases, government intervention, notably through state ownership, has been predominant, but failures have been numerous in view of the difficulty of aligning ownership structure to financial, managerial, and technological requirements and of garnering the support of domestic interest groups. In this paper the focus is China’s efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, as China strives to bear the ARJ-21 project to execution and even considers entering the market for wide-bodies, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest – especially when compared to the shipbuilding industry – and better coordination in the overall industry comes a distant fourth in the explanations’ peaking order.http://deepblue.lib.umich.edu/bitstream/2027.42/40165/3/wp779.pd

The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing

Since 1960, only one new country, Brazil, has succeeded in delivering more than one civil jet per month. Otherwise, all the countries now offering world-class planes were established in aviation by the end of World War I. This being said, low-cost producers within several of the newly emerging markets have already acquired front-end manufacturing expertise as a direct result of industrial offset contracts and/or other forms of technology transfer. In all such cases, government intervention, notably through state ownership, has been predominant, but failures have been numerous in view of the difficulty of aligning ownership structure to financial, managerial, and technological requirements and of garnering the support of domestic interest groups. In this paper the focus is China’s efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, as China strives to bear the ARJ-21 project to execution and even considers entering the market for wide-bodies, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest – especially when compared to the shipbuilding industry – and better coordination in the overall industry comes a distant fourth in the explanations’ peaking order.aerospace, China

Determinants of MNE Subsidiaries Decisions to Set Up Own R&D Laboratories - Theory and Evidence

We explore the determinants of MNE subsidiaries decisions to set-up own R&D laboratories drawing on evidence from UK regions. In this context, we also test for the interaction between firm's internal and external environments. We also integrate extant IB and strategic management literatures and incorporate recent debates in New Economic Geography (NEG) in specifying the 'external environment'. We find support for the role of firm's 'productive opportunity' and predictions of the NEG on the basis of an analysis of primary data. We discuss implications for managerial practice and government regional policies.MNE subsidiaries, R&D laboratory, internal and external environment, productive opportunity

Investigating the Information Systems Heterarchy

This article assesses how one IS organization is changing in response to the increased globalization of software development and posits the emergence of a new form of multi-national enterprise (MNE)—the heterarchy. Data from two projects create new insights into the structures and behaviors of ISMNEs as they adapt to global systems development. The article identifies four primary dimensions of impact—cultural, economic, operational, and organizational—and suggests how such organizations are evolvin

Development Asia

Beneath the gloss of Asia’s newfound prosperity lies an unsettling reality. Rising inequality has denied the benefits of Asia’s economic growth to many millions of its citizens. The problem is worsening as the region’s rich get richer much faster than the poor, who miss out on the income, education, and health care they need to lead fulfilling lives. In this issue’s Special Report, Development Asia examines Asia’s widening inequality from many different perspectives. We look at the role of globalization in producing inequality, and consider the disputed relationship between inequality and economic growth. Asia isn’t the only region suffering from a wealth gap, but unlike others it has failed so far to narrow the divide. Most of its large economies have shown rising income inequality since the 1990s, and rural poverty is outpacing urban poverty across much of the continent. If left unchecked, the consequences of this trend could be dire. Palaniappan Chidambaram, the Government of India Finance Minister, provides unique insights into India’s experience with inequality in a fascinating question-and-answer session. In a forthright opinion piece, former World Bank chief economist Justin Yifu Lin delivers his prescription for tackling inequality in the People’s Republic of China (PRC). We discuss how some countries have managed to sidestep the inequality trap, and reveal how others like Cambodia have made progress in curbing the symptoms of inequality— in this case child mortality. Rounding out our cover package is a central question: What can be done about inequality? While some characterize inequality as a phase on the path to prosperity, an emerging consensus suggests otherwise and highlights the importance of inclusive, jobs-rich growth. In our Features section, we venture into Asia’s sprawling slums for a closeup look at how hope—and economies— can take root amid the squalor. Many slums are now vital hubs in the broader economy of their cities, a positive step but one that complicates plans for slum redevelopment. Closing this issue is Black & White, a new section that provides a space for some of Asia’s leading photographers to display their work on a specific development project or theme. In this issue, Filipino photographer Veejay Villafranca spent time with the garbage-pickers of Manila’s Smokey Mountain waste dump. Veejay’s powerful image, on page 56, and the story of a project trying to improve the lives of the pickers, suggests it was time well spent

Pathways to Innovation in Asia's Leading Electronics Exporting Countries: Drivers and Policy Implications

This paper was prepared for the Democratic Pacific Assembly 2003 Conference, "Common Future of the 21st Century Pacific," September 18-21, 2003, in Taipei, Taiwan. This paper offers a framework for exploring emerging pathways to innovation in Asian electronics industries, as well as their drivers and policy implications. The focus is on "stylized facts" rather than on the diversity of specific country trajectories. I demonstrate that the role of Asia's leading players in the electronics industry is changing - from global export production bases for hardware and software, a transition is under way to the creation of commercially viable innovations and standards. I argue that transformations in global markets, production and innovation systems are providing new opportunities for Asian firms that seek to improve their innovative capabilities. To exploit these opportunities, however, important changes are required in Asia's innovation strategies, policies and management approaches. I highlight the considerable potential of "technology diversification" strategies as an intermediate option for attempts to move beyond "fast follower" strategies. A completely revised and updated version has been published as: "Pathways to innovation in Asia's leading electronics-exporting countries - a framework for exploring drivers and policy implications", International Journal of Technology Management, special issue on "Competitive Strategies of Asian High-Tech Firms; Vol. 29, 1/ 2: 6-20.

Managing Diversity in the Global Economy

This thesis will focus on the study of the diversity management in businesses today, since the 2Ist century is around the comer. It seeks to study and highlight the importance and benefits of having a diverse workforce in today\u27s organizations. Each day more and more companies are doing business globally, and that is why this thesis attempts to find a balance among the similarities and differences employees might encounter in any organization. The advantages of a diverse workforce for successfully penetrating global, ethnic minority, and other group markets are many. Yet, making diversity work while simultaneously ensuring a stable and cohesive corporate or institutional environment can be challenging. Achieving and managing diversity demands sensitivity to and respect for group and individual differences. Many businesses have realized that it is important to go beyond national frontiers in order to expand and understand diverse groups of customers and making its product successful in other types of markets. Globalization is not just an advantage but is becoming a necessity in today\u27s businesses. Doing business abroad will help considerably to understand diversity in the workplace. One of the first steps to optimizing the productivity of employees is to help them intellectually and emotionally understand why different groups of people have diverse beliefs and cultural behaviors. The ultimate goal of diversity management is to recognize, work through, and eventually transform stereotypes of others. Over the years the issue of diversity has taken on more and more importance. This is so because the number of immigrants in the United States is spreading their cultural impact all over the country. The purpose of the present study is to examine whether having a diversity management strategy should be considered as a competitive advantage for companies to improve their effectiveness and be successful. Differences among workers should be seen as valuable assets or tools to create an effective working environment in a competitive economy. The project\u27s hypothesis is based primarily in the statement that as many companies use diversity as a consistent management practice, the more benefits they will obtain from working with a diverse workforce. Companies should give everybody the opportunity to grow and move up into the corporate ladder regardless of his or her beliefs, cultural background, age, sexual orientation, gender or other differences. Three different diversity studies were analyzed in depth in order to see how each one has been managed and how it was useful to each organization. These three studies produced considerable evidence to suggest that the hypothesis be accepted and to conclude that, managing diversity in the workplace will be always an advantage if it is well managed and practiced consistently