Local Enterprises in the Global Economy
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Local Enterprises in the Global Economy

Issues of Governance and Upgrading

Edited by Hubert Schmitz

This book opens a fresh chapter in the debate on local enterprise clusters and their strategies for upgrading in the global economy. The authors employ a novel conceptual framework in their research on industrial clusters in Europe, Latin America and Asia and provide new perspectives and insights for researchers and policymakers alike.
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Chapter 11: The effect of global standards on local producers: a Pakistani case study

Khalid Nadvi

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11. The effect of global standards on local producers: a Pakistani case study Khalid Nadvi* 1. INTRODUCTION Since the late 1980s, there has been a rapid rise in international standards addressing a wide range of concerns, from quality assurance, health and safety, labour conditions, to environmental, social and ethical norms.1 These standards reflect a growing interest with how production and delivery takes place as much as with what product or service is provided. The importance of such standards is enhanced by their incorporation in the new ‘rules’ governing international trade. Compliance is often necessary for market entry, and critical to international competitiveness for both developed and developing country producers. Global standards also point to an emerging and critical area of global governance, where various international public and private actors have come together to shape standards and promote their implementation (see Chapter 3, this volume). Yet, little is known of how global standards effect local producers, especially in developing countries, and in particular how they influence inter-firm relations, both within clusters and between developing country producers and global buyers that are linked through global value chains.2 This chapter addresses this lacuna by asking whether global quality assurance (QA) standards, and in particular the ISO 9000 standard, enhance or harm the position of local developing country enterprises in the global economy. There are two diametrically opposed scenarios: ● ● Compliance with global standards can potentially offer developing country producers two advantages: (i) a means of raising their productivity...

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