Blue Jeans Industry

Topics: Globalization, Vertical integration, Strategic management Pages: 2 (390 words) Published: October 23, 2011
Summary of article 1 (Blue Jeans):
* Study of the implications of export-led strategies in terms of development of a region mainly focusing on blue jeans industry in Torreon. * Shift of Mexico’s economy from import-substituting industrialization strategy to export-oriented strategy as a result of NAFTA. * Contribution of pre-NAFTA Industrial cluster to the industrial growth of Mexico through horizontal integration and liberalization of trade. * Influence of external linkages to industrial clusters which is criticized for maquilization of the economy. * The emergence of full-package network firms through the concept of global commodity chains and globalization of firms and workers. * The arrival of foreign lead firms that coordinate the production process and the transformation of maquilas to full package networks affecting the firm’s performance, intracluster dynamics and local development. * Contribution of full package network: upgrading of industry (from maquila to full range production activities), firms (providing direct link to export markets), introducing vertical integration, employment growth, skill upgrading of local labor force, better working condition, and higher wages. Summary of article 2 (Shifting Governance):

* The impact of globalization on global economic shift in terms of functional integration of internationally dispersed activities. * The transformation of investment-driven phase of globalization to trade-based and then to new digital era of globalization. * Development requires selective linkage with distinct kinds of lead firms in global industries, in both producer-driven and buyer-driven commodity chains. * Producer-driven (automobiles) industries mainly operate with industrial capital, research, development and technological competencies, vertical networks and economy of scale. On the other hand Buyer-driven (Garments) industries operate with commercial capital, design, marketing, economies of scope,...
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