Emerging Hubs in Central-Eastern Europe, Trade Blocs and Financial Co-operation
AbstractMany European countries have faced the erosion of the competitive advantage in the international market with a mixed strategy of productivity increase at home and labour cost reduction abroad, through the international fragmentation of production and subcontracting in low wage countries. Italy in particular, has delocalized segments of its industrial production in Eastern Europe. The advantage of delocalization abroad – with particular reference to East European countries – is due to the low cost of labour, depends from the capability to transmit information efficiently and the availability of a complete supply-type blueprint in the receiving country. The paper discusses the prospects open to Italia apparel firms and presents a case study dealing with the development of outsourcing by the Benetton group in the last decades.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0511013.
Length: 22 pages
Date of creation: 17 Nov 2005
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Note: Type of Document - pdf; pages: 22. Fragmentation in the Italian apparel production
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Vertical Integration; Global Organization of Production; Macroeconomics;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
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"Choosing between foreign investment and subcontracting: Strategies of Italian firms in Romania,"
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