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Worldwide price chains and overseas construction networks are growing a world economic system more and more characterised by means of fragmented and really good construction dispersed throughout borders. This examine presents an outline in their improvement and the results for small and medium sized organizations. The examine proposes activities to aid the participation of firms from the higher Mekong Sub-region in international worth chains.

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Extra resources 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)

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Furthermore, Chinese labour costs are rising; some global buyers are becoming concerned about relying solely on Chinese producers. In 2006 the United States and the European Union reintroduced trade restrictions on surging Chinese garment exports. Nonetheless, Chinese competition requires upgrading by other apparel and textile manufacturers. These developments put pressure on smaller enterprises relying on traditional labour-intensive methods for low-quality textile production, the ability of which to move to the higher value added activities in the apparel GVC is generally constrained.

They are offloading increasing responsibilities to their top-tier suppliers – such as Delphi, Visteon Corp. and Lear – expecting considerably more return in activities along the value chain and in geographic scope. The new demands on suppliers go well beyond excellence in manufacturing performance and low costs, which are becoming widely available. Higher-tier suppliers must increasingly provide process technology development capabilities and have the ability to perform a wide range of activities in the value chain, including help with product and component design, component sourcing from lower-tier suppliers, inventory management, testing, packaging and outbound logistics.

Between 1995 and 2000 global trade in furniture grew by 36 per cent, as compared for example with world merchandise 15 Particularly useful sources for this section include Kaplinsky and Memedovic, (2003); Kaplinsky, Morris and Readman (2001); and International Tropical Timber Organization and International Trade Centre UNCTAD/WTO, (2005). 5 per cent), or apparel (32 per cent). 4 billion, it was the largest low-tech sector, exceeding apparel (US$ 51 billion) (Kaplinsky and Memodovic, 2003). Two GMS economies, China and Thailand, are among the top 10 global exporters.

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