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The Globalization Trap of the Aluminum Extrusion Industry

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The Globalization Trap of the Aluminum Extrusion Industry

Bruno G. Ruettimann, Alcan Engineered Products, Singen-Germany

Track: MANAGEMENT ISSUES - Globalization

ABSTRACT --- Globalization is no longer a bet; it has become reality. It will have
a decisive structural impact on the economic system of every country. Although the
aluminum extrusion industry fundamentally presents the financial-based type 2
globalization characteristics, it will also experience a price-based type 1c
globalization effect from low-cost exporting countries. First effects are already
perceivable. What will the consequent structural changes look like? Will different
patterns appear between the North American and European extrusion industries?
Which actions should Western extruders undertake to face the challenge? The paper
analyzes the competitive system of the extrusion industry, and its structural changes,
in the advanced economies due to the globalization impact. It develops different
competition scenarios based on foreign trade models and the contingent strategies
chosen by Western extruders.

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