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The Effects of NAFTA on Global Sourcing
Elsie Echeverri-Carroll
University of Texas at Austin, USA
Volume 2: 2005, pp. 3-24; ABSTRACT
In a unique occurrence, non-U.S. producers began capturing increased world market share across many industries in the 1980s (Monczka and Trent 1991). As U.S. firms have struggled to maintain world market share, they have relied increasingly on global sourcing as a key strategy to sustain competitive advantage (Kotabe and Helsen 1998). The growth of global sourcing is evidenced by the fact that trade in components and parts has been growing at a considerably faster pace than that for other finished products (Yeats 1998). This trend indicates that firms are exploiting not only their own competitive advantages in order to compete successfully, but also the comparative advantages of other countries that affect their decisions regarding where to source and market.
The Americas + Rest of World
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