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Opening the door to China

In: Surfing the Global Tide

Author

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  • Michael S. Wynn-Williams

Abstract

I have set out the conditions for an automobile industry paradigm. This defines the theoretical structure for a prototypical automobile manufacturer in terms of scale and vertical integration. These two structuring forces have been assessed in terms of economies of scale and transaction costs, respectively. The resulting model has extended the Budd Paradigm to show how an optimal firm would integrate the four main processes (R&D, BIW, powertrain, and final assembly) into a full-function structure, each function exploiting the available economies of scale.

Suggested Citation

  • Michael S. Wynn-Williams, 2009. "Opening the door to China," Palgrave Macmillan Books, in: Surfing the Global Tide, chapter 0, pages 183-216, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-23359-1_7
    DOI: 10.1057/9780230233591_7
    as

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