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By J. Rath

Immigrants who've verified their very own companies have contributed in lots of how one can the industrial improvement of yankee and eu metropolitan components. the purpose of this booklet is to appreciate why a few of these companies are included into the mainstream whereas others remain at the financial fringes via targeting their embeddedness of their fiscal, politico-institutional and social environments.

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Additional info for Immigrant Business: The Economic, Political and Social Environment (Migration, Minorities and Citizenship)

Example text

The index for production (in value terms, constant prices) fell from 181 in 1970 to 140 in 22 Regionalisation in a Globalising World 1975 and 100 in 1980 (Scheffer, 1992, pp. 91–9). The crisis was probably most strongly felt in the contract clothing industry, which concentrates on the (labour-intensive) assembly of clothing for retailers or other producers. 1 However in the second half of the 1970s this pattern changed in two ways. On the one hand the clothing industry seemed to recover from the crisis.

Wages in developing countries remained low – thereby disturbing the Fordist balance between mass production and mass consumption – and increased capacity for mass production was not matched by a similar increase in mass consumption. The spread of manufacturing on an international scale was therefore both a product of Fordism and a factor in its decline. 10 The possibility of increasing productivity under a Fordist regime was reduced, which led to a fall in profitability and investment rates. The mass markets for durable consumption goods became saturated.

What is often forgotten is that social capital is goal-specific. The connection between social networks and the economic environment has been worked out in a provocative manner by Light. In Chapter 9 he presents a conceptual criticism of the globalisation theory based on the insights of network theory. Globalisation theory claims that global restructuring provides a complete explanation of phenomena such as immigration, immigrant employment, immigrant businesses and their informalisation. However, as Light shows, global restructuring cannot have caused all these phenomena even if, for the sake of argument, we assume that global restructuring works as its proponents claim.

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