This study analyzes the impact of international trade on the diffusion of flexible manufacturing in a general equilibrium framework. Suppliers produce a flexible base product that can be adapted to the specific input requirements of a continuum of downstream industries. The vertical structure is...

lobalization is one of the buzz-words in the 1990s. It points to a world in which geographic location becomes increasingly irrelevant, a vision that has aroused both hopes and fears. Surprisingly, globalization is accompanied by increasing regionalization. This volume is a timely contribution to...