Evaluating how economics, government, and law affect value creation in the global context

Humphrey, J., & Schmitz, H. (2002). How does an insertion in global value chains affect upgrading in industrial clusters? Regional studies, 36(9), 1017-1027.
 
In this journal, Humphrey & Schmitz, (2012) aim at explaining how the development of global value chain impact the process of development of industrial clusters. The authors have decided to explain the scope at which the local development strategies from the producers get the chance to enter into the global value chains (Humphrey & Schmitz 2012). Also, the journal defines how the value of the chain also focuses on the importance of global customers and the government involved in defining the upgrading chances. The authors conclude that there are different ways into which clusters enter into the global value chains; this, as a result, comes with impacts that can either lower or improve the local economy development efforts (Humphrey & Schmitz 2012).

Lee, S. H., Yamakawa, Y., Peng, M. W., & Barney, J. B. (2011). How do bankruptcy laws affect entrepreneurship development around the world? Journal of Business Venturing, 26(5), 505-520. 
 
Lee et al., (2011) in this article explain how the government laws related to bankruptcy impact the process entrepreneurship development across the world. Based on the article, when a government imposes positive and entrepreneur-friendly bankruptcy laws there will be increased entrepreneurship development within the societal and local level (Lee et al., 2011). The main argument in this article is that at the time when the government decides to punish those global based entrepreneurs at the time they fail, it will motivate them to easily give up as well as the entrepreneurs facing an inherited high risk of starting new companies (Lee et al., 2011). At the case when this happens, then the potential entrepreneurs will give up and the number is penetrating to the global market decreases as well (Lee et al., 2011).