Global Sourcing using Local Content Tariff Rules

Publication Type

Journal Article

Publication Date

5-2007

Abstract

Trade globalization has brought a surge in Free Trade Agreements (FTAs). Although trade agreements have been studied extensively from the economic point of view, there is very little operations management literature on the effect of FTAs at the firm level. In this work, we present a material sourcing model which can be used by companies. The model addresses local content or value-added requirements for trade concessions, and is motivated by the Japan-Singapore Economic Partnership Agreement FTA. We provide solution techniques for realistic problem sizes for the model which can be used by manufacturers located in any FTA country.

Keywords

Global sourcing, free trade agreement, local content, tariff, Singapore, Japan

Discipline

International Business | Operations and Supply Chain Management

Research Areas

Operations Management

Publication

IIE Transactions

Volume

39

Issue

5

First Page

425

Last Page

437

ISSN

0740-817X

Identifier

10.1080/07408170600838449

Publisher

IIE

Additional URL

https://doi.org/10.1080/07408170600838449

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