is more costly to import, but foreign customers buy U.S.-built products because to them the prices seem low. When the dollar is strong, the reverse holds true.
In the 1990s, several events changed the traditional patterns of how the United States conducts business overseas. The end of Soviet rule in Europe opened up the opportunity for engaging in much more trade with that major area of the world. In 1992 Western Europe achieved fuller economic integration,though many barriers remained (no tariff barriers ) to the free movement of goods among all nations. Inaddition, environmentalists in Europe are attempting to maintain restrictions on truck traffic so that more freight is forced to use rail and waterways.
In Europe, pressure from the “Greens” (an environmental protection interest group) has caused truckers to use a ratings system, Euro I, Euro II, and Euro III, for their vehicles. Most new trucks are in the Euro II category, and soon there will be Euro III vehicles. “Austrians who have been particularly hurt by the transport problems relative to the size of their country, allow no truck traffic across the mountains to move at night other than vehicles in the Euro II category, which are perceived as running more silently than those classified as Euro I. Asa trucker in Austria, you have a choice of losing many hours or operating one of the newer, quieter, cleaner trucks.”
Also in the mid-1990s, the North American Free Trade Agreement (NAFTA) came into being, and efforts are being made to achieve closer economic integration among Canada, the United States, and Mexico. A major problem appears to be granting Mexican trucks and truck drivers access to the United States.
Although this paper is written from the standpoint of U.S.-based firms involved in international trade, another type of firm has recently developed, one that can locate almost anywhere in the world and engage in commerce with any and all nations. The term global logistics is more applicable to the logistical challenges of this type of firm. Many corporations can be considered multinational.
Many degrees of involvement characterize global operations. A study of the world’s auto industry presented several stages toward becoming global, with the ultimate stage being transregional. When “a company feels that it must integrate activities across the world in order to prioritize certain phenomenon ( economies of scale, geographic convergence of markets, etc. ), the configuration of a transregional company’s geographical organization tends toward homogeneity. Different regions are construed to be spaces of specific competencies and, from the very outset; attempts are made to coordinate these spaces through a global approach to the company’s activities and to its network of alliances. A world-wide range of products is sold in various markets.”
There are many examples and descriptions of computer-based and internet-based applications that are revolutionizing the practices of logistics and
supply chain management. Some international settings are just as advanced, others are not. Trade involving North America, Western Europe, and parts of Asia utilizes computer and Internet applications as sophisticated as can be found anywhere, Internet usage for handling foreign logistics operations continues to increase. A survey of 77 large U.S. exporters in 2002 asked, “Which of the following export activities does your company plan to conduct online over the n
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