Can “Buy American” Hurt US firms ?

An article in the Wall Street Journal (September 16,2009) desribes the “Buy American” laws that are part of the US government’s stimulus package.  But companies whose supply chains include Canadian suppliers, like Aquarius, a manufacturer of sewage treatment equipment, are left out.   The same issue applies to GE’s wastewater treatment system assembly. The “Buy American” rules require assembly in the US – and that is a constraint when the supply chain is already optimized across locations.  Are such “Buy American” rules difficult to impose and unreasonable in today’s complex global supply chains ? Will the unintended consequences be higher prices and fewer jobs created domestically ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , . Bookmark the permalink.

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