Analysis of the Effects of U.S. National Security Controls on U.S.-Headquartered Industrial Firms (1986) / Chapter Skim
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I. Introduction
I. Introduction
Pages 1-10
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products in international trade. Determining the overall competitive effects of the export licensing system is difficult both because the mechanisms by which the effects manifest themselves can be diffused and because the licensing system has so many varying degrees of influence.
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export trade into the portion covered by export controls and the portion that is not.8 (See Figure 1.) The vertical axis of the figure breaks down total export trade by geographic region.
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Basically, this study seeks only to focus on national security controls, but practically speaking this narrower definition of scope cannot always be maintained. Not all of the data developed for this report could be broken down by type of export control (i.e., national security, foreign policy, nuclear nonproliferation, short supply, and crime control)
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The segment of trade covered by national security controls needs to be broken down further to reflect the —4—
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With this additional division, there becomes 18 possible combinations of type of license and country destination for which competitive effects could be examined. (See Figure 4.)
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Estimates of the size of economic impact developed in Chapter VI principally are prepared to illustrate how for administrative costs and for effects of reduced direct exports, the magnitude of the impacts are consequential. But these estimates do not trace through the possible economic effects of the controls on a number of other areas.
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But while some of these other factors, exchange rates for example, cut across all export sectors, the export control system effects vary by industry sector. Our initial research indicated that it was the high technology industries that were incurring the greatest economic costs due to the U.S.
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Chapter IV looks at the export control system from the viewpoint of the private sector, using information developed from the nearly 200 responses to a National Academy Questionnaire. In order to better define the complex competitive effects of the system, interviews were conducted with over 20 U.S.headquartered firms that use the export control system.
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There is another inherent limitation in the research design followed in this study that the Panel should understand besides the point regarding the limited scope of the cost estimates. We predominately collected data from U.S.-headquartered operations, but some reports about possible adverse competitive effects of the controls focus on the reaction of the U.S.
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1 Aerospace Industri Association of America, Inc., Electronics Association, Computer Business Equipment Manufacturer's Association, Electronic Industries Association, Health Industry Manufacturers Association, National Electrical Manufacturers Association, National Machine Tool Builders Association, Robotic Industries American Association, Scientific Apparatus Makers Association and Semiconductor Equipment and Materials Institute.
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