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Intro; Preface; Purpose of the Present Book; Empirical and Historical Background: Globalization and Digitalization; Preliminary Analysis of Globalization, Trade, and Digitalization: A Brief History; Structure of the Book; Summary; Acknowledgments; Contents; About the Contributors; Part I: Capability-Architecture Frameworks to Explain Globalization and Digitalization; A Design-Information-Flow View of Industries, Firms, and Sites; 1 Introduction; 1.1 Purpose and Scope of This Book; 1.2 Some Basic Ideas on the Evolution of Firms and Industries; 1.2.1 Product, Site, Industry, and Firm

1.2.2 Manufacturing as Flows of Design Information1.2.3 Manufacturing Site as Economic Agency; 1.2.4 Competition and Competitiveness as Driving Forces; 1.2.5 Evolution of Capabilities and Architectures; 2 A Framework for Analyzing Industrial Competitiveness; 2.1 Industrial Competitive Analysis: A Missing Link in Modern Economics; 2.2 Economy, Industry, Firm, and Site Revisited; 2.3 The Capability-Architecture-Performance Framework of Industrial Evolution; 2.3.1 Manufacturing as Design Information Flows Among Productive Resources; 2.3.2 Competitive Performance of Industries, Firms, and Sites

2.3.3 Organizational Capabilities of Manufacturing Sites2.3.4 Architectures of Products and Processes; 2.3.5 Basic Types of Architectures: Modular, Integral, Open, and Closed; 2.4 Architectural Positioning Strategy; 2.4.1 Internal and External Architectures; 2.4.2 Architectural Positioning Matrix; 2.4.3 Competition Among Open-Inside Platforms; 2.4.4 Product-Based Industry and Platform-Based Industry; 3 Implications and Conclusions; 3.1 Summary of the Evolutionary Framework; 3.2 Comparative Advantage in Production/Design Cost; 3.3 Evolution of Industries, Firms, and Sites

3.4 Between New and Old TheoriesAppendix: The Case of Postwar Japan-Capability-Building and Architectural Fit; References; The Nature of International Competition Among Firms; 1 Introduction; 2 A Brief Account of Traditional Trade Theories; 3 How Relative Wage Rates Are Determined (Elementary Discussion); 4 A Short Detour into Elementary Graph Theory; 5 Elementary Discussion Continued; 6 How Relative Wage Rates Are Determined (Input Trade Case); 7 Historical Nature of Regular Values; 8 A Short Remark on Technical Change; 9 A Factor Behind the Comparative Advantage Theory

10 Main Features of Cost Competition10.1 Three Meanings of the Near Equation; 10.2 The Japanese Experience After the Chinese Reform and Opening-Up; 10.3 The Case Where Material Input Costs Are the Same; 10.4 The Case Where Material Costs Are Different; 10.5 Comparative Cost Criterion; 11 Competition with Large Wage Rate Handicaps; 12 Wage Rate Movements; 13 Overall Patterns of Specialization; 13.1 Transportation Costs; 13.2 Fine Product Differentiation; 13.3 Emulation Effect; 14 Some Notes on the Demand Side; 15 Conclusions; References; Product Variety for Effective Demand Creation

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