TITLE

The impact of the global factory on economic development

AUTHOR(S)
Buckley, Peter J.
PUB. DATE
April 2009
SOURCE
Journal of World Business;Apr2009, Vol. 44 Issue 2, p131
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: The global factory is a structure through which multinational enterprises integrate their global strategies through a combination of innovation, distribution and production of both goods and services. The global factory is analysed within a Coasean framework with particular attention to ownership and location policies using methods that illustrate its power in the global system. Developing countries are constrained by the existence and power of global factories. Firms in developing countries are frequently constrained to be suppliers of labour intensive manufacturing or services into the global factory system. Breaking into this system is difficult for emerging countries. It requires either a strategy of upgrading or the establishment of new global factories under the control of focal firms from emerging countries. The implementation of these strategies is formidably difficult.
ACCESSION #
36781678

 

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