In the past, American manufacturers exported a lot of small, high-value-added goods and outsourced low-value-added products and assembly to other countries. Some of that has now been reversed, with individual companies relocating assembly of some heavy, low-value products at home for logistical reasons, while manufacturing high-value components remains overseas. However, from a global perspective, the comparative advantage of emerging countries is still obvious, and the development potential of manufacturing industry remains. Modern intra-industry trade theory shows that once a country has an advantage in a certain industry or product, due to factors such as increasing returns to scale and imperfect competition, this advantage will be strengthened. Therefore, after decades of manufacturing transfer, emerging countries such as China have formed advantages in manufacturing, which is a great challenge to the return of manufacturing in the United States.
the main content?
The change of international division of labor system provides an opportunity for the return of American manufacturing industry