ABSTRACT
Upgrading usually occurs when peripheral plants link up with global production networks and try to improve their position within such networks. When foreign plants of transnational companies upgrade their product line, they can have positive effects on the regions where they are located. The reason is that upgrading often requires workers with higher skills and thereby improves local labor markets. Furthermore, upgrading can give the firm more autonomy and as a consequence, more competence and power. Broadly speaking, greater freedom for the plant can strengthen the economic sovereignty of the region too.
