The Rise of Production Sharing
THE NEWEST WORLD ECONOMIC TREND is production sharing. Although neither export nor import in the traditional sense, this is how it is still shown in our trade figures and treated in economic and political discussions. Yet it is actually economic integration by stages of the productive process.
Few people have heard of production sharing, but everyone who has a hand-held calculator is familiar with it. The semiconductors that do the calculating are “Made in America” and then shipped for assembly to a developing country such as South Korea or Singapore. The finished product is then marketed primarily ...