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Particular technological advances, for example, the convergence of service modes and the microelectronics revolution, provide economies of scale but also require rapid inputs for capital investment. Among the problems and challenges Inose addresses are the software crisis, or the high cost of developing more sophisticated and diversified software; structural changes in industry, particularly in job design and labor requirements; standardization and maintaining interoperability between systems and equipment; reliability and security of systems against both external and internal disturbances; and integrity of information and protection of privacy.

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Like Ramqvist, Inose views telecommunications technology as the means to promote mutual understanding and cultural enrichment worldwide. Perspectives on the impact of technology on another industrial sector—construction—are presented by Alden Yates who describes the most significant trends in the areas of construction-related design, construction equipment and methods, automation and expert systems, and construction management.

Computer-aided design has, among other things, improved communication between designer and supplier and speeded up the design development process. Increases in productivity are being achieved through off-site fabrication and assembly and robotics. Logistics practices, skill requirements, and labor-management relations are also changing as a result of these new technologies.

In the long run, however, the effectiveness of management will determine success. Pehr Gyllenhammar makes a complementary point about the importance of management practices in his paper on the manufacturing industry. To claims that the manufacturing sector is on the decline in an increasingly. One of the most influential changes has been the new technologies employed in the automotive sector, including new engineering materials, computer-aided design, robots, and microcomputers.


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These new technologies mean that decision making can become decentralized and that small-scale manufacturing can be cost-effective. Another important factor changing the manufacturing industry has been new demands from employees and customers, what Gyllenhammar refers to as the invisible contract between them and the corporation. In fact, the new technologies have brought about important changes in the way work is organized.

Less desirable tasks have been taken over by robots; light, flexible technologies allow workers to organize themselves so that they command the technology instead of vice versa; and new materials-handling mechanisms permit the layout of equipment to fit particular work organizations. The challenge for managers lies in organizing production so that they can develop their workers through both technical and leadership training.

Gyllenhammar concludes that a viable manufacturing industry is necessary but not sufficient to solve the problems of unemployment and slow growth. The manufacturing industry is also the subject of the paper by Emilio Carrillo Gamboa; however, he discusses the issue of production sharing as both a result and a means of globalizing industry.


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By moving production facilities abroad to low-wage developing countries, firms manufacturing products that have entered the downside of the product cycle can maintain a competitive cost advantage. Mexico, in particular, has become an important production-sharing partner for the United States because of proximity, demographic factors, and the Mexican economic crisis which has resulted in lower wage levels that are competitive with labor costs in the developing countries of Asia and government programs that support production-sharing.

The maquiladoras, or production sharing sites, have been the subject of debate in Mexico for a number of reasons: the benefits of foreign-owned assembly services are not extended to the rest of the economy, the maquiladoras do not absorb traditional unemployment, and they are too vulnerable to swings in the U. In addition, some of the plants have been criticized for their poor working conditions. Nevertheless, the author contends that they are an important source of income, employment, and foreign exchange, and proposes that the production sharing offers significant economic opportunities if the competitive advantages of Mexico as a production-sharing site are improved and assembly activities are more closely linked with the domestic economy.

Carrillo Gamboa acknowledges the objections to offshore production sharing but suggests that its economic and political advantages far outweigh the disadvantages. For example, gross national product GNP has increased rapidly due to the globalization of industry, and export-driven economies have helped the Pacific Rim nations overcome the disadvantages of scale and the shortage of foreign exchange.

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Kolm asserts that progress in the region is likely to continue, considering that there are suitable gradations of development, ample raw materials in the region as a whole, and a populace that has demonstrated its ability to cope with technological change. The focus of the paper then narrows to an examination of the problems and challenges facing the major groupings of Pacific Rim countries: the Association of Southeast Asian Nations ASEAN ; the newly industrializing countries, in particular, the Republic of Korea; Australia; and the United States and Japan.

Despite their diversity and the impediments they have faced in their industrialization, Kolm contends that technology transfer has been less problematic in the Pacific Rim than in other countries of the world, a sign of hope that competition can coexist with cooperation. Enrique Martin del Campo deals specifically with the influence of technology on development in the Latin American and Caribbean countries. Shifts in economic strength and investment patterns influence the developing countries and make it imperative for them to develop strategies for growth through improved technological and entrepreneurial activity.

Because the economies of the region, like most developing countries, participate in the international sphere through foreign trade, competitiveness in foreign markets is crucial. The rate of innovation, the ability to apply advanced technology, the degree of capital investment, use of natural resources, and the existence of technological support services all affect the competitiveness of Latin America in foreign markets.

Two major factors, however, hamper economic growth in Latin America. Any plan to remedy these problems would require a strong technological component, including development of local capabilities in technology, internal and external transfer of technology, strategic projects that integrate science and technology, and government policies that support scientific and technological endeavors. Ralph Landau and Nathan Rosenberg review the impact of technological change on U.

They cite several key influences on such growth, including technological innovation, high capital investment rates, and increased training of the total work force. The authors conclude that U. One change that poses both opportunities and difficulties is the rapid diffusion of technology to other countries. As a result, the exploitation of new technologies is no longer an exclusive strength of the United States. The maintenance of a high-wage economy will depend on the ability of U.

Landau and Rosenberg also focus on the role of government in creating a favorable environment for business decision making. Policies that encourage personal savings from which investments could be made, reduce the budget and trade deficits, and support a long-term financial climate are essential.

However, because U. If the United States is to remain competitive, increases in productivity must be sustained, and this will happen only if training, management, and investment in manufacturing and services are part of public and private strategies.

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Although some will argue that technology is the cause of the problems resulting from industrialization, Karatsu describes how technology has been used to provide solutions to some crucial problems—the oil crisis and pollution—in his own country, Japan. One characteristic of Japanese methodology is that new, advanced technologies are applied in practical and simple ways that can be easily commercialized.

He cites as an example the use of carbon fiber in. This practice contrasts with that of the United States, where advanced technologies are frequently applied to complex products in the defense industry. A second aspect of Japanese practices in commercializing new technologies is their attention to incremental changes and improvements in product and process. Karatsu concludes by stressing the importance of technological cooperation so that standards of living can be improved worldwide.

The papers in this volume reflect a diversity of national perspectives on the impact of cutting-edge technologies on the individual, industry, and society; appropriate means for harnessing technology to facilitate economic growth for all nations; and the roles that should be played by institutions and governments in the emerging global economy. Nevertheless, agreement on several key issues is apparent: First, technology will continue to fuel economic growth and rising standards of living around the world.

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A second area of consensus centers on the important role to be played by the engineering community in facilitating international technological advancement. Cooperation provides access to regional and national trends in technology, thereby benefiting individual nations as well as the international engineering endeavor. The technological revolution has reached around the world, with important consequences for business, government, and the labor market.

Industrial Policy Beyond the Crisis. David Bailey. International Business-Society Management. Rob van Tulder. Sustaining Prosperity, Nature and Wellbeing. Peter L. Doing Capitalism in the Innovation Economy. William H.

https://sonsgodslarcufi.ga The New Industrial Geography. Trevor Barnes. Dr Pinar Akman. Cliques and Capitalism. Deborah E. Victor D. From Capitalistic to Humanistic Business. Rethinking the Market Economy. John H Dunning. Climate Innovation. The Nature of the Transnational Firm.

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Christos Pitelis. The New Economy in Transatlantic Perspective. Kurt Huebner. Entrepreneurship and Economic Development. Frieder Meyer-Krahmer. Economic Growth in Developing Countries. Yangsheng Zhong. Innovation Clusters and Interregional Competition. Competitive Industrial Development in the Age of Information.

Richard J. Davide Gualerzi.