" (Hill, 1)
Again, it is borne out by our understanding of globalization that larger economies must experience some form of retraction in order to become compatible with trade partners. Here, researchers have observed that "at high transport costs all countries have some manufacturing, but when transport costs fall below a critical value a core-periphery pattern spontaneously forms, and nations that find themselves in the periphery suffer a decline in real income. At still lower transport costs there is convergence of real incomes, in which peripheral nations gain and core nations may lose." (Gould, 1) for the United States and such firms as Boeing, this is a very real threat for which competition may only be engaged by reduction of costs, true competitive edge in an open and global marketplace and a core adaptability to the needs and innovations which are currently overwhelming it.
Works Cited
Bernstein, Aaron. (Dec. 6, 2004). Shaking Up Trade Theory....
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