Monday, April 20, 2020
Leadership Styles
Introduction According to Rao (2010) president Barrack Obama has exhibited different theorised leadership skills since he was sworn in as the 44th president of the United States of America. Such include Charismatic leadership and cross-cultural leadership. Advertising We will write a custom essay sample on Leadership Styles specifically for you for only $16.05 $11/page Learn More He has also captured different leadership theories which include the leader-member exchange theory, contingency theory as well as team leadership theory. Of all this however, it his charismatic/transformational characteristics that seem to define his style of leadership more aptly. Of all American presidents, John F Kennedy is remembered as the most charismatic leader that the country has ever had. During his presidential campaigns, Obama was likened to JF Kennedy owing to ââ¬Å"something rare and specialâ⬠that the president possessed (Bennis Zelleke, 2008, p. 1). Opinio n analysts were quick to point out that there was a specific kind of personal magnetism that attracted people to the president. As charismatic/transformational leaders speak, they are able to woo strangers and make them believe in some kind of a shared meaning. Through proper articulation, they are able to create a vision that is shared by most people in an audience. Kellerman (2009) states that Max Weber was the first sociologist who attempted to give meaning to the word ââ¬Ëcharismaââ¬â¢. Accordingly, Weber used the word to describe a form of leadership where a leader had extraordinary skills that ensured that he always had followers in his thrall. More to this, the charismatic form of leadership given meaning by Weber was powerful, symbiotic and had leaders and their followers engaged and dependent. Kellerman (2009) draws a similarity in president Obamaââ¬â¢s form of leadership and what Weber defined as Charismatic leadership. For starters, the author observes the loyal following that Obama commands (especially right after his election) is evidence enough that he has captured their imagination through his spoken word and his articulation of a vision they all share in. Another example of how he managed to capture people attention was the campaign fundraising where the ordinary Americans contributed small amounts individually until his campaign coffers were almost overflowing.Advertising Looking for essay on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Rao (2010) states, ââ¬Å"Charisma is a sparkle in people that money cannot buy. It is an invisible energy with visible effectsâ⬠(p.1). In Obamaââ¬â¢s Case, the sparkle and invisible energy as defined by Rao pushed him to the presidency and continues allowing him some loyal following albeit the fact that some are being disappointed by the slow progress of reforms in his government. Characteristics Visionaries One of the outst anding characteristics of charismatic/transformational leaders as pointed out by Rao (2010) is that they are visionaries who believe in change. This means that they are anti-status quo. True to this characteristic, Obama assumed power on the promise of change. In fact, his campaign theme was ââ¬Å"change we can believe inâ⬠and one of the presidentââ¬â¢s administration pet projects was change in the health care system in America. According to the White House (2010), the health care reform would ensure that all Americans can afford healthcare. Magnetic personalities The second characteristic of charismatic/transformational leaders as identified by Rao (2010) is their magnetic personalities, which appeals to the masses due to the enthusiasm and energy that such leaders reflect. Among the presidentââ¬â¢s other reform agendas is financial reform. Having taken office when the economy was facing a financial crisis, the presidentââ¬â¢s propositions to reform this sector are just as welcome among the economist as it is among the ordinary citizens. Watson (2010) for example observes that Obamaââ¬â¢s advocacy for a regulatory bill which seeks to ââ¬Å"build a new foundation for economic growth in the 21st centuryâ⬠was well received by the American people who have suffered under the economic recession (p.1). Good communicator It is no secret that the president is a good communicator and also exhibits a great wealth of emotional intelligence. According to Serat (2009), emotional intelligence is ââ¬Å"the ability, capacity, skill or self-perceived ability to identify, assess and manage the emotions of one self, other peopleââ¬â¢s emotions, and group emotionsâ⬠(p. 2). According to Posten (2009), Psychologists observing president Obama during his campaigns for presidency contend that he has a wealth of emotional intelligence. Accordingly, the president is able to interact and get along with other people more easily than other presidential candidates in Americaââ¬â¢s history have ever been. Advertising We will write a custom essay sample on Leadership Styles specifically for you for only $16.05 $11/page Learn More Other presidents who had high emotional intelligence as identified by Posten (2009) include Eisenhower, Truman, Carter, Theodore Roosevelt, JF Kennedy and Ronald Reagan. Among the qualities that are considered when rating oneââ¬â¢s emotional intelligence are; empathy, self-control and self-awareness, all which Posten states that the president has in abundance. Empathy An example of when the presidentââ¬â¢s empathy was evident to all and sundry was when he saved the chief justiceââ¬â¢s face after the CJ flubbed on the oath of office during Obamaââ¬â¢s swearing in ceremony. Later, Obama commented that the CJ ââ¬Å"had helped him on a few stanzasâ⬠. His self-control was evident during the campaigns since he managed to remain calm despite the mudslinging and the negative connotations that were sometimes given to his camp (Serrat 2009). Rao (2010) further points out that ââ¬Å"charismatic leaderââ¬â¢s network with people and build bridgesâ⬠(p.1). Looking at President Obamaââ¬â¢s political rise, one cannot help agree that this is indeed true about him. Recording Obamaââ¬â¢s journey in politics, Brown (2008) states that in addition to his oratory skills that convinces many Americans that he is a capable leader, the air of self-assuredness that the president wears is also an added bonus. ââ¬Å"The president has a seemingly imperturbable belief in his own rhetorical and intellectual giftsâ⬠(p.1). Accordingly, even the party where he sought his presidential nomination believed him and thus showed their willingness to invest in an inspirational president rather than one who showed great potential in administration. ââ¬Å"Like a superstar, he knows that his success or failure very much depends on how the ordinary people as well as those in high government positions respond to himâ⬠(p.1). Respect for others Another characteristic of charismatic leaders which is evident in Obama is the ability to respect others and appreciate them regardless of how insignificant their contributions to the leaderââ¬â¢s position or welfare may be. Brown (2008) notes that people who knew the president on a personal level attested to his ability to appreciate people even those he had only just met. His ability to appreciate people and make personal contact with them, either by simple handshakes or simply enquiring about their welfare made a lasting impression among many people who appreciated his sense of humility.Advertising Looking for essay on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is Cass Sunsteinââ¬â¢s (quoted by Brown, 2008) analysis of Obama however that explains the presidentââ¬â¢s ability to relate with people aptly. ââ¬Å"I thought he liked people, and people liked him. I thought early on, this was someone who could unify the country across political lines. There was something about his lack of dogmatism, and his problem-solving ability and the ability to connect with himâ⬠(p.3). Rao (2010) also points out that some charismatic leaders are self-promoters especially because they have a firm believe in themselves and the potential they possess. As Brown (2008) points out, the presidentââ¬â¢s journey can be considered by some as confident, while some can define it as cocky. Brown for example notes that while visiting Western Jerusalem before he assumed the presidency, Obama had pressed a note that read ââ¬Å"help me guard against prideâ⬠on Jerusalemââ¬â¢s Western Wall. On other occasions, the president has been quoted stating that his wife had served to remind him, that just like other people, he had his own imperfections despite his successes. Conclusion During his campaigns, Obama was a crowd puller. Americans who trusted him regardless of his relative inexperience in politics are a testimony to his abilities to woo people towards his vision. As Kellerman (2009) put it, no other person in most Americans lifetime has succeeded as Obama did in giving an impression of being authentically charismatic. As a result, the president was able to forge a bond with his followers that transcended reservations that may have had about his inexperience in politics and even his race, which admittedly had always played a role in American politics. A year and some months in the presidency, the bond that the president had created among the electorate may have waned in some areas, but his ability to inspire Americans still surfaces whenever he takes the public podium. His success with the healthcare bill is just one exam ple of what his leadership style has succeeded in helping him meet some of the campaign pledges. References Bennis, W. Zelleke, A. (2008) Barack Obama and the case for Charisma. The Christian Science Monitor. Web. Available from: http://www.csmonitor.com/Commentary/Opinion/2008/0228/p09s01-coop.html/ . Brown, C. (2008). Obama: The Journey of a confident Man. Politico. Web. Available from: http://www.politico.com/news/stories/0808/12930_Page3.html/ . Kellerman, B. (2009). The nature of Obamaââ¬â¢s Charismatic Leadership. Harvard Business Review. Web. Available from: http://blogs.hbr.org/cs/2009/01/the_nature_of_obamas_charismat.html/ . Posten, B. (2009) The Power of EG: Emotional intelligence can make big difference in presidentââ¬â¢s success. Web. Available from: http://readingeagle.com/article.aspx?id=125717/ . Rao, M (2010). Are you a charismatic leader? Academic leadership online Journal. Web. Available from: http://www.academicleadership.org/leader_action_tips/Are_You_A_C harismatic_Leader.shtml/ . Serrat, O. (2009). Understanding and developing emotional intelligence. Knowledge solutions, 49(1), 1-9. Watson, B. (2010) Obama Wall Street Speech draws more enthusiasm than protest, Web. Daily Finance. Available from: http://www.dailyfinance.com/story/media/obama-wall-street-speech-draws-more-enthusiasm-than-protest/19450624/ . White House (2010) Heath Reform for American Families. Web. Available from: http://www.whitehouse.gov/files/documents/health_reform_for_american_families.pdf/ . This essay on Leadership Styles was written and submitted by user Connor Blake to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.
Sunday, March 15, 2020
GNS vs Italian Fascism essays
GNS vs Italian Fascism essays Fascism is a relative latecomer onto the scene of political ideologies, and according to a few a rather short lived one. The creator of fascism is without a question Benito Mussolini. Although he never wrote a definitive doctrine on what fascism is, he did explain the main concepts of his ideology, Absolutism, Organicism, and Irrationality. There was another man who picked up the banner of fascism shortly after Mussolini. Although Adolf Hitler is more commonly associated with fascism than Mussolini, he had a rather different projection of what fascism should be. Fascism is the truest ideology as far as what an ideology is supposed to do. Its three components, absolutism, organicism, and irrationality, do just about a perfect job of simplifying, calling to action, and justifying the ideology. This is why fascism is such a potent ideology, it does not involve thinking and questioning the status quo, it only asks for action that is felt to be right to be started. Irrationality is probably the most intriguing facet of fascism, it is not guiding by the people either already having understanding of what is right or gaining consciousness, but instead requires people to follow their emotions and act on that. This is why fascism usually has a large propaganda machine to go with it, by stirring up the emotions people dont even have the chance to think or rationalize what is happening it just is, and as long as what is happening for the nation-state is good then everyone is happy. Without this ability of fascism, it would be no where near as str ong as it is. Organicism is another part of fascism that is unique to fascist thought. In fascism society is a living breathing entity that must be fed and nurtured. To have a thriving society one must realize he is not an individual but a part of the entire collective of people. An example of this thinking is of someone getting a finger cut off, the body will continue to live ...
Friday, February 28, 2020
Approach to Contempory Chinese studies Essay Example | Topics and Well Written Essays - 2500 words
Approach to Contempory Chinese studies - Essay Example However, there have been skeptics from certain quarters, questioning the sustainability of Chinaââ¬â¢s growth and her ability to surpass the United States of America as a superpower by the year 2050. Some have indicated that the economy of China s set to decline and falter given the fact that the country is marred with much corruption. These critics have pointed to the fact the China is governed by one party, lacks checks and balances and that the freedom of the media is not observed. In this aspect, it has been noted that such a country is not poised to prosper and flourish in the modern world. Also, China continues to position herself as a country to reckon with, and one that is set to topple the other super powers and reach the top. This aspect has been exhibits in the nationââ¬â¢s capture of top prizes and accolades. Among these accolades include Americaââ¬â¢s prominent intellectuals and receipt of six Nobel prizes awarded to the country (Central Intelligence Agency, 199 3). Chinaââ¬â¢s journey to becoming a super power is coined mainly in its economic muscles. The production of China has increased thanks to three years of Communism in the country by 1970s. This increase has, however, not been a smooth one as the country had to grapple with the death of about 35 million people dying of hunger during the devastating famine that hit the country in the years 1958 and 1978. This famine was as a result of forced industrialization by the Mao reign. China saw its population grow rapidly during this era, and there was a slight improvement in the standard of life in the country. Chinas threat to America has further been characterized by the steady growth of its economy and a reduction in population. This rapid growth was achieved three decades to 2010. Chinaââ¬â¢s economic achievements were rated to be among the most amazing ones in the history of human species (Economist Intelligence Unit, 1995). The economy grew to over 40- fold between the years
Tuesday, February 11, 2020
Science lab 3.11 Report Example | Topics and Well Written Essays - 500 words
Science 3.11 - Lab Report Example This paper outlines a procedure for cleaning up oil spills in the sea. All the four methods helped in cleaning up the water. The feather dipped in oil and water mixture was different from the one dipped in the oil spill cleaned water. There were challenges of what to do with the oils spill after it was collected from the water. The cotton balls absorbed water as well as the oil. The dish detergent only broke the oil and it does not remove the oil from the water while use of Styrofoam is time consuming, and they also act as pollutants. The home clean-up process is easier as compared to the one in the ocean since there are wind and currents in the ocean which causes the oil spill to move and at times mix with the water making the clean up difficult. Use of paper towels in cleaning up oil spills is more effective as compared to other methods. They absorb the oil without absorbing water as compared to the cotton balls. They are also faced with the challenge of what to do with the collected oil spills, which may be broken down using the dish detergent. Oil spill in oceans and seas is a universal tragedy that is causing environmental pollution and death of marine creatures. There is a need to adopt an oil cleaning procedure that will clean oil spills as soon as they occur and prevent their adverse impacts. I would recommend modification of the paper towel to enable application in large ships and water vessels to enable clean up which will not only be cheap but also
Friday, January 31, 2020
Shopping online Essay Example for Free
Shopping online Essay People need to purchase items such as clothing, and now have the choice to shop online or make purchases in the traditional manner. I. Online shopping has increased and changed the way people shop. 1) There is convince having the ability to shop from home. *With the introduction of internet shopping online has become popular. Shopping online allows access to merchandise sold world wide. It is a growing part of retail. Online shopping is time saving and convenient. There is often no cost for traveling when ordering items online. People do not have to interact. *Shopping online an individual does not have face to face transactions. There is limited person to person interaction with online shopping. People do not have to deal with crowds or unwanted socializing. Ording items online can occur around the clock without the needing another persons assistance. A person can make returns and purchases with the click of a computer mouse. 3) Security of personal information and merchandise. Reliable shopping websites offers a secure way to make transactions. PayPal is a company that offers a reliable and secure way to make shopping online purchases. Using only secure sites will help secure personal information. Tracking numbers to track packages containing purchased items are often provided or can be requested. When making online purchase a confirmation can be sent to a personal email account if one has been provided. II. Traditional shopping offers things that internet shopping does not. 1) There is the ability to interact face to face with others. *When people go outside of their homes to shop they are able to socialize and make to acquaintances. With face to face shopping you can make sure that you are charged correctly. If someone is not charged correctly or mistakes have been made, a receipt is often given at the point of sell. It is easy to haggle for deals when shopping in person. Traditional shopping offers families and friends the chance to spend time together. 2) People can physically and visually check the quality of the merchandise. *With traditional shopping items to be purchased can be examined in advance of purchase. If the quality of an item is not what it should be it can be noticed quickly and easily when shopping traditionally. Some individuals prefer to look before they buy items to ensure they receive what they want. Shopping traditionally allows people the opportunity to do so. 3) It cost money to travel for shopping to make purchases. * Traveling of some sort will happen when shopping the traditional way. The expense of gas or bus tickets should be considered. Factoring in the cost of travel with the amount intended for shopping can help those on a budget. When shopping traditionally quality products are often found various areas. Travel expense will occur. III. Peoples shopping experience varies depending on how they shop via online or traditionally. 1) Some people enjoy socializing when shopping while others do not. * People shop traditionally to spend time with family and friends. These people often enjoy socializing and are not concerned with crowds. Other people enjoy shopping online because of how convenient it is. People have different needs and desires. 2) Make sure personal information is secure and purchases are correct. *When shopping making sure personal information such as someoneââ¬â¢s social security number is secure is important. Online shoppers and traditional shoppers should receive some proof of purchase once an item is purchased. Reviewing the receipt of any purchased item will aid with corrections if needed. Keeping record and receipts will also help if an item purchased needs to be returned or is defective. 3) The quality of merchandise, who, and how items are purchased should be considered when shopping. *Shopping online or traditionally the sellerââ¬â¢s reputation and credibility should be a consideration. Traditional shopping and online shopping offer the choice of who someone does business with. Quality and hard to find items are found easily on the internet and when shopping the traditional way. III. Conclusion 4) With the introduction of internet shopping individual can choose to make purchases online or in person. Online shopping has a large consumer market, but people also enjoy face to face transactions when shopping. The quality of merchandise, who, and how items are purchased are things considered when shopping. How someone chooses to shop depends on personal preference. The choices is yours.
Thursday, January 23, 2020
The History Of Lsd And Its Effects On The American Counterculture Essay
After World War II ended, the age of baby-booming and urban sprawling began. During this time, many American soldiers came home from the war; married, and had five or six children. This created the largest generation ever. Could this new generation change the social world of America? In 1964, most of the baby-boomer's children were in their late teens. This was the beginning of a major social change in the United States. With the birth of rock-n-roll not far in the past, and a growing liberalism of the normally conservative American Society, it is no wonder that a powerful hallucinogenic drug called LSD gained so much popularity. LSD-25 was first created in 1938 by Albert Hoffmann in the Sandoz chemical-pharmaceutical laboratories in Basle, Switzerland. It was synthesized from the twenty-fifth compound of Iysergic acid. When first tested on animals, scientists had no idea that the powerful chemical had such psychedelic properties until Albert Hoffmann himself, involuntarily tested the new chemical. This "involuntary" testing of the LSD is the first time it was ever tested on a human subject; it was a result of Hoffmann accidentally intoxicating himself with LSD-25 during a routine purification process with the chemical.(3) After the experience, Hoffmann wrote: "Last Friday, April 16, 1943, I was forced to stop my work in the laboratory in the middle of the afternoon and to go home, as I was seized by a peculiar restlessness associated with a sensation of mild dizziness. On arriving home, I lay down and sank into a kind of drunkenness, which was not unpleasant and which was characterized by extreme activity of the imagination. As I lay in a dazed condition with my eyes closed, (I experienced daylight as disa... ...lso considered to be very inspirational to the hippies. Alan Ginsberg, a popular beat poet was a favorite of many hippies. Rock and folk music were also big contributors to this new movement. (2) In my opinion, the one thing that gave the most inspiration to the counterculture movement, beyond everything else, is the nationwide recreational use of LSD. LSD opened up the minds of the American youth, prompting them to explore life beyond the norms of society. It made people think critically about the information that is fed to us by the establishment. LSD was the tool to see through all the propaganda of the American capitalist's, and see the truths. The truth is what sparked many young people of this time period to stand up for their beliefs. Drugs like LSD seemed to be a good way to cure ones self from the brainwashing of American media and corporate bureaucracies. The History Of Lsd And Its Effects On The American Counterculture Essay After World War II ended, the age of baby-booming and urban sprawling began. During this time, many American soldiers came home from the war; married, and had five or six children. This created the largest generation ever. Could this new generation change the social world of America? In 1964, most of the baby-boomer's children were in their late teens. This was the beginning of a major social change in the United States. With the birth of rock-n-roll not far in the past, and a growing liberalism of the normally conservative American Society, it is no wonder that a powerful hallucinogenic drug called LSD gained so much popularity. LSD-25 was first created in 1938 by Albert Hoffmann in the Sandoz chemical-pharmaceutical laboratories in Basle, Switzerland. It was synthesized from the twenty-fifth compound of Iysergic acid. When first tested on animals, scientists had no idea that the powerful chemical had such psychedelic properties until Albert Hoffmann himself, involuntarily tested the new chemical. This "involuntary" testing of the LSD is the first time it was ever tested on a human subject; it was a result of Hoffmann accidentally intoxicating himself with LSD-25 during a routine purification process with the chemical.(3) After the experience, Hoffmann wrote: "Last Friday, April 16, 1943, I was forced to stop my work in the laboratory in the middle of the afternoon and to go home, as I was seized by a peculiar restlessness associated with a sensation of mild dizziness. On arriving home, I lay down and sank into a kind of drunkenness, which was not unpleasant and which was characterized by extreme activity of the imagination. As I lay in a dazed condition with my eyes closed, (I experienced daylight as disa... ...lso considered to be very inspirational to the hippies. Alan Ginsberg, a popular beat poet was a favorite of many hippies. Rock and folk music were also big contributors to this new movement. (2) In my opinion, the one thing that gave the most inspiration to the counterculture movement, beyond everything else, is the nationwide recreational use of LSD. LSD opened up the minds of the American youth, prompting them to explore life beyond the norms of society. It made people think critically about the information that is fed to us by the establishment. LSD was the tool to see through all the propaganda of the American capitalist's, and see the truths. The truth is what sparked many young people of this time period to stand up for their beliefs. Drugs like LSD seemed to be a good way to cure ones self from the brainwashing of American media and corporate bureaucracies.
Wednesday, January 15, 2020
Globalization of Production in the Textile and Clothing Industries Essay
East European full reintegration into the world economy had already started during the eighties, but the end of the decade and the beginning of the nineties saw a sudden spurt in that direction. This has taken the form not only of a swift trade reorientation towards the West, especially the EU, but also of new forms of inward foreign direct investment (FDI), subcontracting and cooperation agreements with Western enterprises. As a consequence, Eastern Europe has become deeply involved in the larger process of globalisation of production characterizing the international economy, where firmsââ¬â¢ operations are becoming much more complex and pervasive than traditional arms-length trade and traditional international investment, including both international production and sourcing. Therewith the process of transition to the market appears to be more and more intertwined with Western firmsââ¬â¢ strategies. It is then of some interest to analyse the extent of such relocation, its various forms and the possible impact on both the relocating and the host countries. International relocation can be analysed from different points of view. The perspective of the present paper is to concentrate on one of the most important trade partners of Eastern Europe ââ¬â Italy ââ¬â and on two industrial sectors in which the latter is specialised in production and exports ââ¬â textiles and clothing, which are also of paramount importance in Eastern Europeââ¬â¢s exports. A few data on production, employment, investment and foreign trade may suffice to show the enormous importance of these industries for Italy. In 1993 this country produced almost 40% of the entire EU production of textiles, including knitwear. The other major EU countries followed rather distanced: France (17% ââ¬â including household textiles), Germany (16%) and the UK (11%). The correspondig employment for Italy was 30% of the EU total, taking into account also the firms with less than 20 employees. The second most important country ââ¬â Germany ââ¬â employed just half of that amount. Finally investment, both total and per head employed, reveals a similar pattern, these two countries being followed by France and the UK. The ranking is similar in the clothing industry. In 1993 Italy represented 41% of total EU production, 24% of total employment (including firms with less than 20 employees) and headed the investment ranking, both in absolute terms and on a per capita employed basis. It should be added, in this respect, the particular consumption habits of Italians, who devote to clothing a much higher share of their total consumer spending than the other European nationals. The importance of the internal market is only paralleled by the place of the two sectors in Italian foreign trade. During the last few years Italy has been the second or third world exporter both of textiles and of clothing products, if one excludes Hong Kong due to the paramount importance of its reexports. She is the first Western supplier of the G7 markets for clothing and first on a par with Germany for textiles. The industry presents the second, and growing, largest positive trade balance in Italian foreign trade. The two sectors together represent 11% of her total exports, but a much lesser share of her imports (5%). However imports tend to grow faster than exports. A growing number of competitors is gaining market shares in the EU, at the expense of the traditional leaders like Italy and Germany. Import penetration, which has roughly doubled in the last ten years, is but one of the factors that, starting from the late eighties, is exerting growing pressure on the whole industry at a EU level. Production is falling and labour productivity rising much faster than in average manufacturing. The result for the EU has been 639,000 jobs lost in 1988-94, equal to almost 30% of all job losses in the manufacturing industry. Italy was also hit, although less than other European countries for the reasons indicated later. What is the particular place of Eastern Europe in this process? The CEECs represent only roughly 3% of Italian total trade in textiles, but a much larger share in Italian imports of clothing ââ¬â 15% -, their importance in Italian exports of the same being minor (2%) (table 1). Almost half of the Italian imports of clothing from Eastern Europe come from Romania and more than one fifth from Hungary, the rest being spread among the Czech and Slovak Republics, Bulgaria and Poland, in the order. Together with an increasing deficit for Italy, the share of clothing in total Italian imports from each CEEC has been increasing recently in all cases, and particularly so from Romania and Bulgaria, where it now stands at 41% and 27%, respectively, and from Hungary (12%). The two sectors behave asymmetrically: clothing looms from two to eight times larger in Italian imports than exports, while textiles are far more important in Italian exports, at the exception of exports to former Czechoslovakia. This was also the only country with which Italy ran a deficit in textiles (today with the Czech Republic). Previous studies conducted by the author (Graziani 1993, 1994a, 1994b, 1995) show a generalized relative specialization of the CEECs in most clothing products both on the EU and on the Italian market. Moreover, in both markets import penetration ratios for the same are on the increase. Does this mean that Italian textile and clothing industry is losing ground vis a vis East European producers? The question is whether international trade data ââ¬â like surpluses and deficits, market shares, specialization indices and import penetration ratios ââ¬â by themselves are to be considered reliable competitiveness indicators, if a substantial part of trade flows is in some way or other tied to the importing country. From this perspective, imports into the relocating country could ideally be divided into three distinct flows: a) ââ¬Ëuntiedââ¬â¢ imports from foreign firms; b) imports derived from non-equity cooperation agreements (in particular from subcontracting) ; and c) FDI-related imports. International relocation of production ââ¬â taken here to mean not only the physical delocalisation of production abroad, but also the organized sourcing from other countries ââ¬â affects directly the two latter flows and is then crucial for interpreting the meaning of trade indicators and trends. 2) The Italian model until the mid-1980s International relocation has been almost completely absent in the Italian experience of textile and clothing production until at least the mid1980s. Contrary to the growing international redeployment of its main EU competitor ââ¬â Germany -, Italian relations with foreign markets were mostly centered on arms-length exports. The few affiliates abroad of Italian bigger firms had just the task to support the sales network in the recipient country. This explains also why Italy did not incur into the same dramatic employment reduction suffered by Germany, wich lost half of it in the last twenty years. Besides limited FDI, Italian manufacturers did also avoid subcontracting abroad by obtaining its advantages on a purely domestic level. The logics of subcontracting are well known, all the more so in the textile and clothing industry. Through it, producers look for: 1) lower costs, since the subcontractors do not invoice for indirect costs; 2) more flexible and reactive supply, that can be disposed of in case of ceased necessity; and 3) eventually some expertise and know-how not available in-house. Subcontracting has always been important within Western Europe. According to a recent survey, in 1992 the clothing subcontracting sector employed in the EU 800,000 workers, including 200,000 artisans and 150,000 illicit workers (Mercer 1994). This is equal to roughly 26% of total EU employment in the textile and clothing industry. Nearly 30% were in Italy and 17% in the UK, the others following suit. Up to the mid1980s Italian producers could limit subcontracting almost exclusively within the national boundaries. The following features allowed its coming to life and its efficiency: a) the main and most original factor was represented by the so-called ââ¬Å"industrial districtsâ⬠(Becattini 1987 ).à Production was concentrating in a small area, with a myriad of interdependent small enterprises, horizontally and vertically specialized in each of the subsectors of the industry. Production of wool in Prato and Biella, silk in Como and knitting in Carpi are but a few examples of such districts. We are here in a typical Marshallian world of economies external to the enterprise, but internal to the industry, where all the firms, independently from their size, may reap the benefits from a certain clustering of activities. A traditional culture of industrial work, specialized skills both of workers and services, the possibility of rapid exchange of inventions and improvements, coupled with the widespread use of subcontracting, often to the lower paid workers of the so-called informal economy, were enhancing the locational advantages and decreasing the transaction costs, compensating in this way the higher official labour costs vis a vis lower-wage countries (Forti 1994a); b) most firms were family-run and rather small, a limited number of medium size, as compared to the average West European, while the few larger ones had not yet reached the minimum critical threshold below which a clothing manufacturer is not able to finance the very high costs of internationalization, some of which are typically ââ¬Ësunkââ¬â¢ costs ; c) the main outlet was represented by the national market, where a very fragmented retail network (in clothing) acted as a relative shelter from foreign competition, limiting the import penetration ratio to a level well under the EU average; d) progressively, Italian producers had chosen the product differentiation path (especially in clothing), by positioning themselves in the up-market segments, characterized by non price competition and a high fashion-, quality- and value-added content. As one knows, internationalisation of production is all the more convenient the larger the amounts to be produced and the more standardized the productive processes. ) finally, especially in the textile sector, Italian producers had continually fostered technological innovation, obtaining the highest productivity levels in the world, which allowed them to compete worldwide. 3) From domestic to international relocation: the new strategy of Italian firms. Apart from the progressive erosion of industrialized countriesââ¬â¢ market shares, by the mid- 1980s new features were emerging in the textile and clothing sector. First of all on the international demand side. Consumption growth started to show the first signs of stagnation, while a general rethinking of the relative value of intrinsic quality as against style was in the making. More in general, a better quality/price relation was sought for. Price elasticity increased also for the high fashion- and quality-content goods. A further factor peculiar to Italy was also at work. Domestic demand started to flatten out at the end of the eighties, bringing it more in line with the demand patterns of the other industrialized countries. On the supply side, at the domestic level the concentration rate in both sectors was rapidly increasing, while large firms reorganized and diversified their production. At the same time, Italy became a very high cost country, moreover characterized by a rather rigid labour market. Abroad, emerging countries were progressively upgrading the quality of their products, through a continuous learning process. On the whole, price competitiveness tended to become more stringent. Increasing competition was stemming as well from the concentration processes affecting the distribution sector. Large distributors tended to place big orders and to intervene in the choice of styles, quality, timing and service standards (OETH 1994). A final contingent factor favourable to the internationalisation of production was due to the real appreciation of the lira between 1987 and 1992, which favoured international operations like FDI and subcontracting. As a consequence, Italian firms started to undergo a rather rapid shift from a purely commercial approach at the international level to a relocation approach. This path was followed not only by large, but also by medium and small enterprises. Relocation expressed itself in two main ways: non-equity cooperation agreements ââ¬â licensing, management contracts, but above all subcontracting ââ¬â with some FDI, in lower wage countries; equity agreements ââ¬â mostly FDI in the form of acquisitions ââ¬â at first in the most developed markets; These two main ways of redeployment obviously respond to different motivations. At the beginning, relocation in low-wage countries took mainly the form of international subcontracting. The only exception was represented by the textile group Miroglio, which already in 1971 had realized some FDI in Greece, Tunisia and Egypt. In a second phase, the same group has switched to an organization of production based on so called ââ¬Ëplatformsââ¬â¢, that have the task of undertaking some downstream operations in the clothing industry and of optimizing the relations with nearby subcontractors. We have already noted above that the most powerful force behind Italian firmsââ¬â¢ subcontracting has certainly been the abatement of production costs (cost saving subcontracting). East Europeans subcontractors have been used only in a very minor way as carrying out special functions (specialty subcontracting) or else as capacity reservoirs in case of occasional demand surges (complementary subcontracting). It can also take various forms. The most widespread is at the start a simple agreement with a local producer in order to buy the final product. At most, the Italian firm bought locally or elsewhere the intermediate products necessary to the productive process. In other cases subcontracting involved the export of semifinished products and the reimport of the finished ones, both without or under the outward processing traffic (OPT) regime. Very similar in nature to the US operations of offshore assembly provisions in other fields of industry as well, OPT takes place when some phases of the textile and clothing production chain ââ¬â typically: the sewing phase ââ¬â are carried out by foreign subcontractors. The latter utilise fabrics provided (and owned) by the subcontracting firm, temporarily exported towards the processing country under an EC tariff exemption regime. Up to the entry into force of the Interim Agreements of the EAs customs tariffs were levied only on the value added abroad. Since then, they were abolished altogether. On the other hand, acquisitions in the most sophisticated markets allowed Italian producers to attain several objectives: a) to acquire prestigious brand names; b) to adhere more closely to the host nationââ¬â¢s consumersââ¬â¢ tastes, especially in the medium segments absorbing large amounts of production, and gain market shares from within, keeping a presence in strategic markets; c) possibly, to penetrate third markets and also reimport part of the production; and d) to use the international subcontracting network of the acquired company, especially if it is German. So Marzotto, one of the top textile group in Italy, has acquired the German clothing company Hugo Boss, with a lengthy experience of subcontracting abroad, mainly in Eastern Europe. The aim is to have in a few years half of its production abroad. Another big group, Miroglio, has secured smaller, but more numerous firms: the clothing companies Caroline Rohmer and Sym Claverie in France and Glaeser, Flick, Skarabeus and Gili in Germany, plus the German textile company Steiger&Deschler (Ulmia). Finally GFT acquired the third German clothing producer, Baumler.
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