Opening the door to China

Michael S. Wynn-Williams

Chapter Chapter 7 in Surfing the Global Tide, 2009, pp 183-216 from Palgrave Macmillan

Abstract: Abstract I have set out the conditions for an automobile industry paradigm. This defines the theoretical structure for a prototypical automobile manufacturer in terms of scale and vertical integration. These two structuring forces have been assessed in terms of economies of scale and transaction costs, respectively. The resulting model has extended the Budd Paradigm to show how an optimal firm would integrate the four main processes (R&D, BIW, powertrain, and final assembly) into a full-function structure, each function exploiting the available economies of scale.

Keywords: Intellectual Property Right; Final Assembly; Assembly Plant; Physical Asset; Locational Advantage (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-23359-1_7

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DOI: 10.1057/9780230233591_7

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