the category labourintensive manufactures includes leather textiles clothing and footwear however the two sources of productivity growth result from substantially different corporate behaviour while technological progress relies on investment in innovation and the associated dynamic gains in an enterprise s longterm growth strategy substituting lowercost imported intermediate products for highercost domestic inputs achieves productivity growth through cost reductions from the globalization of production the ways in which the different corporate strategies may affect changes in income distribution are addressed in more detail below the manufacture of parts and final goods in different countries entails not only costs of transportation and tariffs but also of coordination