Subcontracting or Exporting with Flexible Manufacturing

Wen-Jung Liang and Chao-Cheng Mai

Chapter 8 in Positive and Normative Analysis in International Economics, 2012, pp 138-156 from Palgrave Macmillan

Abstract: Abstract According to Eaton and Schmitt (1994), the essence of flexible manufacturing is scope economies in the production of differentiated goods.1 Eaton and Schmitt introduce scope economies as a device for a basic product to be modified to produce differentiated variants. They argue that firms can develop the ability to produce a basic product while incurring a sunk cost of product development. This basic product can be further modified to produce differentiated variants, albeit with an extra switching cost.

Keywords: International Trade; Switching Cost; Foreign Market; Foreign Firm; Basic Product (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-34820-2_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230348202

DOI: 10.1057/9780230348202_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().