One of the consequences of the “flattening of the world” is that many U.S. manufacturing jobs have moved to lower-wage countries like China. Yet according to Davidson (“Making it in America”), many of the automotive parts made by Standard Motor Products are unlikely to move to China any time soon. Why? To what extent is the pattern of international production described by Davidson consistent with Vernon’s Product-Life Cycle theory?

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Major companies shifted their manufacturing companies to maintain competitiveness through low labor ... View the full answer