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      - page 3 / 47

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A New Paradigm ............................................................................................................................. 3 Global Supply Chains: Manufacturing in the 21st Century ............................................................. 9

Typical Supply Chains .............................................................................................................. 9 Business Decisions and the Public Interest..............................................................................11

The Public Policy Dimension of Global Supply Chains ............................................................... 15

Major Policies Affecting Global Supply Chains ..................................................................... 18 Taxation............................................................................................................................. 19 Trade and Investment Policy............................................................................................. 20 Labor and Health Care Costs ............................................................................................ 25 Environmental Regulation ................................................................................................ 29 Currencies and Exchange Rates........................................................................................ 30 Infrastructure and Transportation...................................................................................... 32 Product and Food Safety................................................................................................... 35 Education and Training..................................................................................................... 36 Protection of Intellectual Property.................................................................................... 37 Risks.................................................................................................................................. 38 Fiscal, Monetary, and Industrial Policies.......................................................................... 39 Policy Review Mechanisms .................................................................................................... 42

Conclusion..................................................................................................................................... 43

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Figure 1. International Trade by U.S. Parent Multinational Companies, 2006 ............................... 6

Figure 2. Manufacturing Supply Chain and Input Costs for the Apple Computer iPod© in 2005.............................................................................................................................................. 7

Figure 3. Typical Manufacturing Supply Chain for Wood Furniture from China in 2007 ............ 10 Figure 4. Major Global Sourcing for the Boeing 787 Dreamliner ................................................ 13 Figure 5. A Typical Global Supply Chain with Pertinent Policy Levers ....................................... 19

Figure 6. Indexes of Currency Values Relative to the U.S. Dollar for the Canadian Dollar, S. Korean Won, Chinese RMB, Euro, and Japanese Yen ........................................................... 31

Figure 7. Exports and Imports by U.S. Multinational Companies in Selected Industries,

2005

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41

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Author Contact Information .......................................................................................................... 44 Acknowledgments ......................................................................................................................... 44

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