" (Hill, 1) Again, it is borne out by our understanding of globalization that larger economies must experience some form of retraction in order to become compatible with trade partners. Here, researchers have observed that "at high transport costs all countries have some manufacturing, but when transport costs fall below a critical value a core-periphery pattern spontaneously forms, and nations that find themselves in the periphery suffer a decline in real income. At still lower transport costs there is convergence of real incomes, in which peripheral nations gain and core nations may lose." (Gould, 1) for the United States and such firms as Boeing, this is a very real threat for which competition may only be engaged by reduction of costs, true competitive edge in an open and global marketplace and a core adaptability to the needs and innovations which are currently overwhelming it.

Works Cited

Bernstein, Aaron. (Dec. 6, 2004). Shaking Up Trade Theory....

Business Week. Online at http://www.globalpolicy.org/globaliz/econ/2005/0105shop.pdf
Gould, David M. (1998). Has NAFTA Changed North American Trade? Federal Reserve Bank of Dallas. Online at http://ideas.repec.org/a/fip/fedder/y1998iq1p12-23.html

Hill, S. (2008). Boeing's tanker contract protest raises questions about globalizations. Manufacturing Business Technology. Online at http://www.mbtmag.com/article/CA6546381.html

Holmes, S. (2006). On a wing and a prayer at Boeing. Business Week. Online at http://www.businessweek.com/technology/content/jun2006/tc20060607_864925.htm

IMF Staff. (April 12, 2000). Globalization: Threat or Opportunity? International Monetary Fund. Online at http://www.imf.org/external/np/exr/ib/2000/041200.htm

Rigby, B. & Lalor, D. (2008). Boeing jets order worth 4 billion pounds. International Herald Tribune. Online at http://www.iht.com/articles/reuters/2008/07/14/business/OUKBS-UK-AIRSHOW.php