Turkey 's Textile Industry : Successes And Concerns

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Turkey’s Textile Industry: Successes & Concerns Globalization has led to the rise of transnational corporations and global production chains. Global value chains “[describe] the full range of activities that firms and workers do to bring a product from its conception to its end use and beyond” (Global Value Chains). Firms are forced to make decisions regarding where production takes place, and whether to make or to buy products necessary for the firm’s success.
It is important to note, however, that there are two types of global production chains. The first is “the Producer-Driven Commodity Chain that [refers] to those industries in which transnational corporations (TNCs) or other larger integrated industrial enterprises play the central…show more content…
Over the past decade as globalization has “shrunken” the world, outsourcing, as opposed to insourcing, has become more profitable for large companies. The clothing commodity chain involves all four sectors of the Global Economy: “Global buyers determine what is to be produced, where, by whom, and at what price. In most cases, these lead firms outsource manufacturing to a global network of contract manufacturers in developing countries that offer the most competitive rates” (Fernandez-Stark et al. 2011). These firms often times perform the most valuable actions –branding, design, and the marketing of products- in the apparel value chain. And often times, “these lead firms outsource manufacturing to a global network of contract manufacturers in developing countries…[and] since these lead firms in the apparel industry adopted global sourcing models in the 1970s, manufacturing has become the domain of developing countries” (Fernandez-Stark et al. 2011). The apparel industry’s commodity chain is broken up. The differing stages of this chain take place in different countries, each interdependent to create the end product. Raw materials are extracted and then shipped to textile clothing manufacturers around the world. These include fiber, yarn, and fabric manufacturers. From there, fabric finishers and clothing manufacturers take over. These
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