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Global industrial restructuring intensified during the 1990s, driven by a series of economic and technological developments that encouraged firms to enhance their competitiveness through global tie-ups. Cross-border mergers and acquisitions (M&As) and international strategic alliances are now dominating the internationalisation of industry, supported by dynamic growth in electronic commerce. The global restructuring has generally tended to boost firm efficiency and has helped to spur innovation by facilitating the diffusion of technology and production, and managerial and marketing expertise.
The global economic slowdown in 2001, combined with the events of 11 September, intensified adjustment pressures and had a significant effect on the character and scope of global industrial restructuring. Falling profits and sharp declines in equity markets limited the extent to which businesses could engineer and finance major restructuring initiatives. At the same time, the pressure and need for such restructuring increased as a result of weakened demand and diminished market prospects. The situation differed considerably across industrial sectors, with some experiencing acute difficulties that gave rise to government intervention; other sectors, however, were not significantly deterred in their restructuring strategies.
Issues and development associated with the restructuring were examined at a Business and Industry Policy Forum organised by the OECD's Committee on Industry and Business Environment, on 19 February 2002.
The Forum drew major stakeholders from government, industry and trade unions together to examine: i)the effects of the global economic slowdown and the events of 11 September on the global restructuring strategies being pursued by firms in OECD countries; ii)ways that the benefits associated with global tie-ups could be enhanced while addressing industry adjustment issues more effectively; and iii) areas where policy frameworks could be strengthened to improve global restructuring outcomes. The OECD's Business and Industry Advisory Committee (BIAC) and Trade Union Advisory Committee (TUAC) also participated in the meeting.
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