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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference

 

 Clyde Prestowitz giving presentation to CDI...

 

Steve Olson teaching trade negotiations at the Mekong Institute...

 

Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

Manufacturing Sector


The manufacturing sector is an integral part of the "innovation ecosystem," that encourages economic and productivity growth and creates whole new products and services. Innovation depends on a confluence of factors including advanced research and development, reliable infrastructure, a stable regulatory environment, market incentives and highly-skilled workers. But without manufacturing capacity, the link between innovation and the ability to bring new products to market is lost. Foreign competitors will become the only companies with the manufacturing expertise and capabilities to take advantage of technological advances, and the attendant R&D and human capital will follow manufacturing abroad. It is thus of crucial importance that America retain a strong and healthy manufacturing sector.

The Globalization of the Korean Automotive Industry

Alex Greenbaum and Ulrika Swanson on the Korean Auto Sector.

Of the many success stories of post-WWII industrialization, the creation of the South Korean (hereafter the Korean) automotive industry is perhaps the most remarkable. It is all the more so when one considers that the industry was created from almost nothing. However, contrary to popular belief in Korea, foreign auto firms and access to foreign markets played key roles in establishing the industry and, today, continue to maintain an ever-increasing role in ensuring its survival.

This study examines the history and growth of the Korean automotive industry. More importantly, it examines the extensive partnerships in Korea that have been forged between the domestic and foreign automotive industries. These collaborations have helped maintain Korea's success, and have been paramount to the development of its automotive sector.

Click Here to Download the Report in pdf Format

 

Automobile Retail and Production in the Age of E-Commerce - Evan Schulz

Click Here to Download the Report in PDF Format

The Internet is the basic tool of the new economy. Firms can use it to reduce the costs associated with gathering and disseminating information, and also to aggregate buyers and sellers, thereby creating new, and improving existing, markets. As such, the Internet can enhance productivity, reduce costs, increase competition, and improve the functioning of price mechanisms. Managers are quickly reorganizing value chains to exploit these commercial advantages.

In the automobile industry, Goldman Sachs estimates that the full exploitation of the Internet could reduce production costs for the average $26,000 new vehicle by over $3,600, representing industry savings of nearly $62 billion per year. Furthermore, the estimated gains from business-to-consumer (B2C) e-commerce alternatives are also substantial: Goldman Sachs estimates e-tailing alternatives could generate savings of between $1,048 and $2,579 per vehicle, or between $18 and $44 billion annually.

Read more ...
 

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