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Globalisation > 1. Transnationalisation of Production and Consumption > Flashcards

1. Transnationalisation of Production and Consumption Flashcards

1
Q

What is the definition of transnationalisation?

A

Heightened interconnectivity between people and the receding economic and social significance of boundaries among states

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2
Q

Michael Porter’s concept?

A

Industrial firms value chains 1980

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3
Q

What is a value chain?

A

An integrated set of value creating processes and activities leading to the supply of a product or service

Need to be coordinated and linked together by the management/technology

How best to do this to be most competitive

Where geographically

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4
Q

Who came up with value chains and what year?

A

Michael Porter 1980

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5
Q

What strategic decisions are made by the firm with regards to value chains?

A

Where to locate value adding activities

How to design them

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6
Q

What is the firms objective of value chains?

A

Cost minimisation or product differentiation

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7
Q

Why are strategic decisions made in value chains?

A

To determine where and how to gain competitive advantage

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8
Q

Why is a value chain constantly changing?

A

New products/processes

Competitors strategic decisions

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9
Q

5 Criticisms of Porter’s value chains

A
  1. Only one firm- limited understanding of global production and consumption
  2. Not sufficient in understanding the broader global economy
  3. Unconcerned with how value chains are embedded in the economy and society
    - narrow focus on technicalities NOT on impact on society and economies or how they’re shaped by them
  4. Doesn’t seek to understand firms relationships with other actors e.g gov, trade unions (crucial in no.3)
  5. Relationship with states under-theorised

1BESRAS

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10
Q

Who introduced the idea of commodity chains and when?

A

Gary Gereffi 1994

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11
Q

What did Gary Gereffit introduce and when?

A

Commodity chains 1994

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12
Q

Commodity chain definition

A

“Sets of inter-organisational networks clustered around one commodity or product, linking households, enterprises and states to one another within the world economy”

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13
Q

Why commodity chains?

A

“Big US Buyers have shaped production networks… in the worlds most dynamic exporting countries… of East Asia” Gereffi

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14
Q

Commodity chains interested in what about East Asia

A

The impact of big US firms on east Asia- do they benefit or disadvantage them?

How interacting and shaping the economy and society

How they take advantage of existing conditions in these countries

How they integrate themselves into another country

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15
Q

Commodity chain example of big US company

A

Nike 1970/ off-shored their production to factories in east Asia

Wanted cheap and efficient production

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16
Q

Why did companies offshore production to East Asia?

A

Labour was disorganised
- weak unions

Wanted Nike to help promote development and exports

Couldn’t say no to conditions

17
Q

Networks in commodity chains are

A

Situationally specific

Socially constructed

Locally integrated

  • this underscores the social embeddedness of economic organisation
18
Q

Buyer driven commodity chains definition Gereffi 1994

A

in ‘Industries in which large retailers, brand-names merchandisers, and trading companies play the pivotal role in setting up centralised production networks in a variety of exporting countries, typically located in the 3rd world’

19
Q

Buyer driven commodity chains

A

Industries with large retailers play a pivotal role in setting up decentralised production networks in a variety of exporting countries, typically 3rd world

E.g Nike

20
Q

Why 3rd world?

A

Cheaper and less organised labour

Lends to labour intensive consumer goods industries

21
Q

Buyers don’t own production facilities

A

They offshore and outsource them

Do design/specify

22
Q

Buyers in East Asia give rise to particular patterns of coordinated trade

A

Set up from one place to another and how goods travel along this commodity chain

23
Q

Producer driven commodity chain

A

Firms that dominate commodity chains in relation to high tech, high value industries e.g tech and cars 1980s/90s

Often secretive, firms carefully control info about products

24
Q

Power in buyer driven commodity chains

A

Buyer has ability to connect/disconnect links between consumption and global manufacturing

Gain info about what consumer want
- info about demand gives power = RETAILER

Key control point = consumption

Buyer can pit suppliers against each other to get the best deal and push prices down

Creates high barriers to entry at level of brands and retailers

25
Q

What do states do in buyer driven commodity chains?

A

Infrastructural investments

Transport links

Communication networks

Production privileges- low prices

Trade privileges- import of materials, quick exports

Finance- cheap/long term

26
Q

Features of uneven development in DEVELOPING countries of buyer driven commodity chains

A

Concentration of production to low value sectors and spaces e.g garments and low end tech

Depend on overseas markets. Reduction in demand = fall in turnover
Protectionism = bad?

27
Q

Features of uneven development in DEVELOPED countries

A

Impact on trade policy

Deflation - cheap goods outcompete manufacturing in America
e.g Steel industry

28
Q

8 Criticisms of Gereffi

A
  1. Overly concerned with governance and power
  2. Buyer driven/producer driven distinction problematic
  3. Not concerned with historical impact on CC
  4. Not concerned with national and local differences
  5. Not focussed on strategy
  6. Doesn’t acknowledge significance of national ownership of firms
  7. Connotations of ‘chain’ = fixed, CCs are flexible and mobile
  8. Doesn’t consider key actors e.g. trade unions

DPOP HILDS NO CC KA

29
Q

What is Neoliberalism?

A

Free market ideological doctrine prominent in 1980s

30
Q

Neoliberalism Ideas

A

Push for freer markets and withdrawal of the states

Markets efficient at allocating capital

31
Q

Argument against that markets are efficient at allocating capital?

A

Rich get richer

Poor get poorer

32
Q

Henderson et al 2002

A

Global Production Networks

33
Q

Features of Global Production Networks

A

More focus on consumption

More fluid than CCs

Networks constantly change and alter

Focus more on firms and roles of wider range of actors

Crucial role attributed to IT, info to suppliers

How places are transformed by flows of capital labour, knowledge, power etc.

34
Q

Global Production Networks how value is being created

A

Power
Embeddedness
Value
Differential power relations between different regions

35
Q

Criticisms of Henderson et al 2002 Global Production Networks

A

Not enough attention to institutions

Lose sight of impact of Neoliberalism

Need better understanding of changing dynamic of uneven devlopment

36
Q

Two types of commodity chain

A

Buyer driven

Producer driven

37
Q

What is a value chain

A

Integrated set of value creating processes and activities leading to the supply of a product or service

Globalisation (6 decks)

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