1945

Efficiency seeking strategies to capture export markets: Transnational corporations in Costa Rica, Honduras, Jamaica and the Dominican Republic

Transnational corporations (TNCs) have come to play a central role in manufactures exports (UNCTAD, 2002). Efficiency-seeking companies set up international systems of integrated production (ISIP) based on business strategies aimed at optimizing the configuration of their production processes by moving production to locations that offer significant advantages in terms of costs and access to export markets (Lall, Albaladejo and Zhang, 2004). The subdivision of the global value chain and the multiplication of supplier networks have opened up new opportunities for developing countries to take part in ISIP. Labour-intensive activities are moved to places where a low-cost but efficient workforce is available. The segmentation of the value chain has also generated new opportunities to export services for countries that are able to provide them competitively.

Related Subject(s): International Trade and Finance
Sustainable Development Goals:
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