Linking Greater Mekong Subregion Enterprises to by United Nations

By United Nations

International worth chains and foreign construction networks are developing a world financial system more and more characterised by means of fragmented and really good creation dispersed throughout borders. This learn offers an summary in their improvement and the results for small and medium sized firms. The research proposes activities to aid the participation of agencies from the larger Mekong Sub-region in worldwide price chains.

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Extra info for Linking Greater Mekong Subregion Enterprises to International Markets: The Role of Global Value Chains, International Production Networks and Enterprise Clusters (Studies in Trade and Investment)

Sample text

8. Note: Dark shading represents an exclusive or near-exclusive or nearexclusive internalization of activity; vertical bars mean predominant internalization, light shading predominant outsourcing and no shading 100 per cent outsourcing. such as IKEA are sourcing increasingly from developing Asian economies, including China, Indonesia and Viet Nam. Design is outsourced primarily in the case of smaller buyers, but it is only the very small independent retailers that depend on their low-income country suppliers for design of their products, which tend to involve low-margin, price-sensitive items such as garden furniture.

However, others are seen as “proprietary”. For example, the buying or market access function itself is carefully protected, erecting a barrier for suppliers to deal directly with final customers. With respect to design, small retailers generally have no design capabilities and often sell into standard markets, such as garden furniture. Medium-size and selected small buyers act as intermediaries, finding new designs and passing them on to their suppliers. Global retailers however invest significant resources in product design; they view control of the overall design function as a critical success factor in their competitive strategy.

Global retailers however invest significant resources in product design; they view control of the overall design function as a critical success factor in their competitive strategy. 4. The case of South Africa: Lessons The experience of the South African wood furniture industry is a vivid illustration why the challenge to SMEs in GMS is in fact twofold: (a) how to access global markets and (b) how to do so in a way that provides for sustainable income growth (allowing for increasing pricing power or “value creation”).

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