Over the past decade there has been a booming interest in industrial agglomeration and specialisation by economists and policy-makers. The cluster theory has become a standard concept the world over, implanted in the minds of policy-makers and utilised through various adaptations from Porter’s (1998) original model as a tool for national, regional and local competitiveness, their innovation and growth. A cluster is the geographical concentration of various associated institutions in related industries that not only compete, but also co-operate in order to achieve efficiency and innovation (Porter, 1998). Clustering has become so prominent and popular due to its central focus on the elements that provide firms, industries and locations a form of competitiveness. This resonates closely with politicians and policy-makers due to the increasing importance of competitiveness in succeeding in a global economy.
MITI describe their adaptation of the cluster model as a concept of ‘dynamic comparative advantage’ in which future growth areas were picked. These areas were picked based on any expectation of a ‘high-added value, global income elasticity of demand, and positive domestic income employment impact’ opportunity. MITI and the Japanese government used a targeted, hands-on approach by engaging in various interventions such as finance policies, domestic protection, tax policies, and investment into technology assistance and development. Japan’s economic growth claimed to be due to the industrial agglomeration and developed networks that were made up of technological linkages among integral associations such as universities, research institutions and firms to generate innovation. Instead of Porter’s original production network made of up...
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...tional support with universities, research laboratories, think tanks, trade associations and venture capital institutions allowing them to cultivate a mutually beneficial relationship. The success of the clustering will attract foreign direct investment due to the concentration of labour, skills and infrastructure and the favourable environment for innovative spin-offs.
Regulatory duplications, higher food safety standards, create a competitive disadvantage for Australian food processing businesses and therefore could be seen a major obstacle for new companies entering the domestic environment and in terms of the success of the policy.
If correctly implemented this policy announcement by the government could see Australia become the food bowl of Asia and companies within the food processing and manufacturing industry will be able to achieve their economic goals.
In order to right the ship that is America’s food industry, we need to recognize the monopolies in the U.S food industry. These massive food conglomerates must be broken up in order to create competition in the market. This will allow the completion to dictate the market. More companies means more competition, and when companies compete, the consumer wins.
Initially Japan’s objective for industrializing was to avoid being overtaken by Western superpowers, however during the process of industrializing the Japanese government realized that industrialization is key in order to remain a dominant force in the market during this new contemporary era. Thus the Japanese began to promote industrialization in order for national prestige, power, and wealth just as Germany did. In the end both countries were successful from modernizing and industrializing. Thus promoting the increase of power and wealth for members of the higher classes. While having generally negative effects on the members of lower classes.
In today’s world even with the economy suffering and individual income declining, the food industry is still up and running. Chain restaurants, mom and pop establishments, and fast food restaurants that are learning to market their products cheaper and more reasonable to the consumer are still going strong in the United States. They are offering healthier meals due to the consumer wanting to become healthier. They have their ups and downs like any business but are learning to give the consumer what they need and desire. That is the way restaurants keep their customer happy, by buying products from company like Sysco, Gordon’s Food Service, (GFS), and other restaurant suppliers. However; Sysco is the number one supplier to restaurants and hospitals, making them the most profitable company in the world (Sysco.com, 2011).
This paper will be outlining the theory behind the Endogenous Growth Theory, or EGT, and its comparison to other competing theories. To begin though it is important to clarify that the word endogenous just means to originate from within, or not attributable to any external or environmental factor, so one can assume that this theory relates to growth happening within the region instead of having to depend on external forces for market growth. EGT forces primarily on human capital, innovation, knowledge, and entrepreneurship to be the major contributors to economic growth within a region (Bennett). This innovation is a large part of the EGT, which manifests itself from research and
132). With the production of food at such a large scale, the issue of uniformity is called into question. The industry revolves around making food so it is easier to produce. The uniformly and scale of farming can enable a person with the intent to do harm to affect a large percent of food in a small attack (Pehanich 2006). With this attack and having uniformly in food making at one place it can put a person out of business since all they produce is affect from the attack. With farms owned by a corporation, like Tyson, food can easily follow this since the company makes money by having a simple and uniform practice. This problem is only going to increase as the years go
Almost every angle of the food industry can be considered dangerous. It is dangerous to make the food, as a meatpacking job is one that is viewed as having abnormally high risks; however when the food is handed over a counter on a tray or prepared in a family of four’s kitchen, it poses a huge risk to humankind. Foodborne illnesses are all too common and almost everybody has the possiblity of contracting a foodborne illness. These are life threatening diseases that need to be monitored and regulated; therefore the enforcement of government regulations in the fast food industry could potentially save many lives that are lost annually due to the numerous factors that need regulation.
Many businesses used this new process to raise the price of their competitors. They did this by putting constraints on entry restrictions (Woods 1986). At the state level, other laws were put in place to support the Food and Drug Act mainly to help local and area producers who were and would be facing new nat...
Food industry can be chartered by low margin industry, while along with the shift of power from the manufacturer to the purchaser, the price and demand became flexible, and the product variety increased.
...s particularly evident in Ireland where attractive tax regulations have lead to the influx of American technological companies. Finally there is little attention given to geographical scale within Gereffi’s model. Yes, geography of commodities is recognized on a global scale but the approach neglects the formation of regional and sub-national chains in order to support the larger global chains. (Smith et al 2002)
At this point, the FDA (Food and Drug Administration) has started increasing regulations for prepared foods, however, only a few years ago they had some vague laws concerning these foods and companies could get away a lot more than they can now. One of the reasons for this was that the FDA was more concerned about the certain effects store bought food had on people and were less concerned about misleading labels on packaging. However, they seem to have become more aware of the fact that a lot of companies are tricking consumers into believing that their product is the best, and the FDA has started to regulate companies that have misleading advertisements.
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s employment relations model (Wiley, Wilkinson, & Young, 2005). Cognizant of the fact that neither Japan nor China has given up on its external (protectionism or parity) adjustment tools, it is posited that they can nonetheless coexist since both “produce different things and in different ways” and as such avoid the cited perilous US and Mexico competition; but due to globalization, the operating environment portends a convergence or divergence of Industrial Relation (ER) strategies between China and Japan (Lipietz, 1997; Zhu & Warner, 2004).
The third weakness is the fact that food tests, inspections, and the detection of contaminants are taken seriously only after an outbreak of some food-borne diseases, food poisoning, or deaths. The increase in the number of food establishments or outlets such as cold stores, hypermarkets, and supermarkets reported by the Public Health Director has also made inspection and control mo...
An increasing number of countries are encouraging investments with specific guidelines toward economic goals. MNCs may be expected to create local employment, transfer technology, generate export sales, stimulate growth and development of the local industry.
O'Bryan, Scott. 2009. Growth Idea : Purpose and Prosperity in Postwar Japan. University of Hawaii Press, 2009. eBook Collection (EBSCOhost), EBSCOhost (accessed December 4, 2011).
Regional development is essential to overcome the social evils related to the localization of industries in developed areas alone, which results in overcrowding, noise and congestion. These adversely affect the health and efficiency of inhabitants.