This book is based on extensive research undertaken by the authors in three apparently quite different industries - aerospace, beverages and retail. Despite the fundamental differences in these industries, the authors' research reveals common processes at work. In each of them, an oligopolistic structure is emerging among the core firms within the global supply chain. In each of them also, intense pressure from the core firms has stimulated high-speed industrial concentration across the entire supply chain. The authors term this process the 'cascade effect'.

Their research, based on rich empirical evidence, provides deep insight into the determinants of industrial structure in the epoch of globalization. Its conclusions are important theoretically, as well as being practically important for firms and policy-makers, especial those in developing countries. They show that the challenge facing firms from these countries is trying to 'catch-up' with the world's leading firms,and is far deeper than was the case prior to this epoch and than is usually thought to be the case today.

PETER NOLAN is Sinyi Professor of Chinese Management at Judge Business School, University of Cambridge, UK.

ZHANG JIN is University Lecturer in International Business at the Judge Buisness School, University of Cambridge, UK.

CHUNHANG LIU is Director of the China Industry Development Research Centre at Peking University, China.