Market and the Mountain Kingdom: Change in Lesothos Textile Industry Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In Maseru, the capital of the Kingdom of Lesotho, the germs of industrialization and modernization have been promising, and more than 50,000 workers, mostly women, were employed in the textile industry, the figure reflected a more than threefold increase in a few years. Just outside Maseru, however, life was pastoral. 1.9 million people, Lesotho, 86% are engaged in subsistence agriculture. Hopes for progress of the country rested with the jobs created by Taiwanese and Chinese firms. In early 2006, however, the survival of the nascent industry was at stake. Exchange rate Lesotho Loti, made life difficult for clothing company, which exported almost all of its production in the United States. Although firms enjoy duty-free access to otherwise protected by U.S. clothing markets African Growth and Opportunity Act, the provisions that most benefit Lesotho expires in 2007. Several large buyers will make finding solutions that can make or break the industry Lesotho. Local union leaders were upset the government's textile boom and bust of the alleged imminent. Of course, the government will play an important role in developing the strategy and institutional context of adjustment, but the decisions taken by the unions, foreign investors, foreign buyers, and the U.S. government will also be crucial. How to judge the descendants of the first meeting in Lesotho on world markets - as a triumph or a disaster "Hide
by Ravi Abdelal, Regina Abrami, Noel Maurer, Aldo Musacchio Source: Harvard Business School 26 pages. Publication Date: Mar 09, 2006. Prod. #: 706043-PDF-ENG