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This paper is motivated by two observations in the large civil aircraft (LCA) industry. (1) Boeing and Airbus are significantly different in the degree of offshoring. (2) The degree of offshoring also changes among different aircraft models. To offer an explanation, this paper focuses on issues related to fragmentation. Existing literature has established the tie between fragmented technology and offshoring. However, it is assumed that production can be fragmented readily and at no cost; and only exogenous global economic factors have impact on the degree of fragmentation. This model distinguishes itself from others by incorporating endogeneity in fragmentation. A final-good firm can spend on R&D specifically for its own fragmented technology. As a result, the final-good firm can optimally choose the portion of components to be offshored. A strategic trade policy model is used to show that the degree of offshoring depends on the firm's own cost of production, the host country's cost of production, the global state of technology as well as the government trade policies. In particular, export subsidy and subsidy on R&D of fragmented technology are shown to be policy substitutes. Keywords: Fragmentation; Offshoring; Outsourcing; Aircraft; Export subsidy; R&D subsidy; Boeing; Airbus JEL classification: F12; F13; F23; L13
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Broadly, on-line communication platforms are online resources that allow the exchange of information using the Internet. They include Email, Instant Messaging, Online Open Forums, Online Blogging and Social Networking Sites. All these platforms have their own specialties and properties. In education, there are great advantages for high-schools to utilize these online communication platforms, especially Online Open Forums and Social Networking Sites. Communication is the backbone of education. Everything from classroom teaching to school policy making depends on effective communication [1]. With these new communication platforms at hand, schools can develop more adaptable and friendly channels among students, teachers and management (only the first two interveners are covered under this study). Various components of the schools will essentially work together in a more collaborative and regenerative way [2]. This research paper analyses how online communication platforms are changing the internal nature of education. It takes sample populations from two schools in Macao (Pre-University of the University of Saint Joseph, USJ, and Colégio Diocesano de São José, CDSJ) with different backgrounds such as medium of language, level of degree, professor's background and style of teaching. Teachers of these schools are communicated first for their opinion on key elements to improve learning with online communication platforms. These factors are implemented in a platform such as Social Networking Sites. As expected, students are instructed to utilize this platform (Facebook) to enhance their learning practice and experience. The result of this utilization is assessed in terms of student opinions and feedback.
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