The defense and aerospace industry consists many sectors including armory, weaponry, aircrafts, technologies, and many more. Within such sectors, countless components are needed to produce finished products, many of which are obtained from foreign sources. To keep a high level of organization, which is needed in large companies and corporations, rather than outsourcing individual components, joint ventures between companies with different specialties are formed. Recently, United States based United Technologies ended a joint venture with England based Rolls-Royce in order to start a new one. As a premier innovating company in engine development and manufacturing, Rolls-Royce provided United Technologies with engines for their crafts, however is now beginning a new joint venture with Pratt and Whitney. This redesigned joint venture resulted in Pratt and Whitney investing $1.5 billion in the sector of Rolls-Royce that produces engines for the all new Airbus A320 jetliner.
As in this venture, other large companies, such as Boeing, also rely on forms of outsourcing to complete projects with maximum efficiency. Though Boeing did not choose Rolls-Royce to produce the engines in their new 737 dreamliner, they do not manufacturer their own engines. Rather, they obtain them from CFM located in the United States. Nearly no large company in the aerospace and defense industry contains both the time frame and recourses to produce every part in-house; therefore outsourcing occurs (occasionally overseas). Due to comparative advantages, it is clear that certain countries have the capabilities of producing different components with higher qualities and for cheaper prices. It is my belief that large companies, such as Boeing, may actually benefit from limiting their manufacturing overseas and advertizing its nationalism. Many people favor industry remaining in their country.
As a very patriotic citizen, I tend to purchase items Made in the USA whenever possible. As I support my country, I feel as if governments and private buyers act in similar fashions and often buy from their own country.
ReplyDeleteI agree with Max above because although it seems inevitable to import and export when we have comparative advantages, citizens should support their country 100%. A simple act of a US good purchased by a US citizen can eventually lead beneficial increase in GDP.
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