FLEXIBILITY AND ADJUSTMENT - THE HONG-KONG WATCH INDUSTRY AND GLOBAL CHANGE

A case study of the Hong Kong watch industry demonstrates the adaptive flexibility of labor-intensive industrial clusters. The study describ es the evolution of industry in Hong Kong, and highlights the unique a ttributes of the country's economic history which have influenced the structure of production systems in the country. Focusing on the role o f global competition, the case study identifies the constraints posed by a labor-intensive flexible production system in the face of continu ous technological change in the industry.