Define triangular manufacturing in terms of economics?

Answer 1

Triangle manufacturing 1970s/ 1980s term that explains when buyers place orders with companies in Tiger Economies, these companies act as 'middlemen', subcontracting the production in low wage countries usually in south East Asia. These goods are then shipped directly to buyers and the triangle is completed. It is common practice in 'buyer-driven' commodity chains and is of relevance to Economic Geography and Global Production Chains/ Global Commodity Networks. Motives for subcontracting out is to incur a lower marginal cost of labour, especially relevant in East Asian Countries where there are upward pressures on wage rises amongst specialized division of labour. Outsourcing allows middleman to generate surplus value without incurring sunk costs of capital or their own factories.