Exports of Manufactures From Developing Countries; The Global Factory: Foreign Assembly in International Trade

On the basis of a first-rate analysis of trade up to the early 1980s, Cline calculates a "protection function" for industrial countries that suggests that they can continue to expand imports of manufactures from developing countries at a substantial rate. Grunwald and Flamm examine one of the channels of that trade: the movement of goods back and forth to make use of cheap labor in the production process in developing countries. They suggest policies to moderate the impact on labor in the industrial countries. Mexico, Colombia, Haiti and the semiconductor industry come in for special attention.