By Giovanni Federico

This ebook examines the expansion of the realm silk undefined. Professor Federico files Western industrialization, the technical growth and the altering equipment of creation that enabled the silk to deal with elevated call for. Silk grew to become the 1st eastern luck tale at the global marketplace, with Italy conserving a large proportion till exertions used to be diverted due to its industrialization. eastern industrialization additionally led its silk to an identical destiny after the second one global battle.

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But the need to deal with peasants disadvantaged the foreigners. 60 Foreign ownership was perhaps more widespread in the Mediterranean basin, where the cultural differences were smaller. Anyway, it still remained an exception: there were few 'multinational' enterprises. The largest of them, the French Veuve Guerin, had twentyone factories with some 1,900 basins in the early 1920s. 61 An interesting indirect evidence on the importance of (unobservable) trading skills is the difficulty of explaining the turnover of firms with 'structural' variables such as their size or technical efficiency.

In fact, peasants and weavers usually behaved as normally risk-averse people. The peasants sold their cocoons as soon as possible (before the harvest with delivery contracts or immediately after it), the weavers bought the silk from hand to mouth. Therefore reeling, not silkworm raising or weaving, was the really risky business. This type of risk was not exclusive to the silk industry. Other industries processed agricultural commodities harvested once a year and sold their product many months later.

Sources: 1890: Industria, 1891; 1904: Annuario, 1904; 1917: Annuario, 1917; 1927: Annuario, 1927. derived from incumbency' the firm had. 44 This statement is questionable, as the commercial skill of the manager and the reputation of the brand were surely important assets. The result, however, does not change if the definition of entry is restricted to additions to the productive capacity. 4, which takes into account the plants. The turnover was indeed less frantic, but still very high. Actually, the figures overstate the real number of 'entries', as they include the factories built by incumbents.

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