The Role of National and Transnational Corporations in the Globalization of Dairying in La Laguna, Mexico
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Abstract
The current role of the TNCs linked to dairy production processes in the La Laguna region of Mexico is analyzed. The analytical axis is the LALA Corporation, a Mexican company that acts as the articulating agent of the regional production system. We first identify the channels used by TNCs to make their products known, and then trace the strategies TNCs use to operate in the region. Next, we identify the articulation among TNCs and local industries like LALA, and their role in improving dairying in La Laguna. Results show that companies’ strategies for penetration are heterogeneous in nature and size, and has resulted in vertical and interdependent sector, where different actors play specific roles in production, transformation, transportation, storage, financing, regulation and commercialization of the dairy supply. LALA has promoted the horizontal integration of producers, and TNCs’ and foreign firms’ participation in specific phases of production, thus making it possible to improve upon extant high technology levels in La Laguna.
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