The Emergence of Giant Transnational Contractors in East Asia: Emergent Trends in Global Supply Chains.

The rise of giant transnational contractors, based primarily in Hong Kong, Taiwan, South Korea, and China, who operate factories throughout the world, is a yet-unstudied trend that has important implications for global development. These factories are primarily found in East Asia (China, Vietnam, Malaysia, Singapore, and Indonesia), Mexico, and Central America, although in certain sectors (such as apparel) they are beginning to appear in Africa as well. The emergence of giant transnational contractors portends a dramatic shift of organizational power within global supply chains, as large factories provide a potential counterweight to the growing power of retailers. This paper offers some preliminary observations on two aspects of global supply chains: how the trend towards concentration of production in large transnational East Asian contractors impacts the relative power of contractors vis-à-vis retailers, and the extent to which large contractors generate linkages with other firms and sectors locally that contribute to industrial upgrading and thereby broader-based economic development, as well as working conditions. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]