Globalisation of Industrial Activities: Four Case Studies : Auto Parts, Chemicals, Construction, and Semiconductors

As industries become increasingly global in their activities, the efficacy of industrial policies in OECD countries and the linkages between industrial and trade policies are called into question. To compete globally, companies need higher technological sophistication, maximum flexibility, customized products, and extensive supplier networks. To latest phase of internationalization is also characterized by new patterns of cooperation among industries (joint ventures, subcontracting, licensing, and interfirm agreements) which change the notion of the comparative advantage of nations. This report describes the various forms taken by the internationalization of industrial activities together with the evolution of industrial and trade policies.