Capturing Value In Global Production Networks Flashcards
Chain leaders tend to capture most of the value in a global production network
True
In many cases FDI is indirectly financed by the host country
True
What is the most important factors for a nation to move up the value chain
The higher parts of the supply chains willingness to share knowledge and the willingness of the lower parts to learn
What are the four relationships in a gpn
Intra firm (relation within network), inter firm (between firms), firm-place and place-place relationships
What is the most important channel for technological learning
Intra firm linkages, a TNC tends to have ransfer knowledge to subsidiaries in other nations and improve local suppliers by demanding quality, enabling them to compete globally
What 3 factors influence the extent that a TNC develop local linkages
The TNCs strategy (do they want local supplies or not), the local economy and time
TNCs with high vertical integration are more likely to develop local linkages
False, if they make everything themselves they don’t need nothing
Institutional or national familiarity apear to be the main factor in the development of local linkages
True, Taiwanese TNCs have much greater local linkages in China and south east Asia than f.ex japan
Employees in TNCs often create firms that become suppliers to their gormer employers
True
What factors effect the number if jobs created by a firm
The scale if activities and the technological nature. Factors effecting the indirect job creation are the level of local linkages and the income generated by the TNC enabling increased demand for supplies however they also tend to displace local jobs
TNC’s tend to pay higher than average sallaries especially in low income countries
True
In Europe large transnational companies must facilitate communication and representation of employees in different countries at their own expense on an annual basis
True
Working conditions tend to be worse in TNC subsidiaries
False but the conditions in distant suppliers have been highly scrutinized like the child sacrifices mines and shoddy construction in sweatshops
What are the two key aspects of working conditions in GPN’s
measurable standards and enabling rights
Global production networks are rarely the only option for local firms to take advantage of foreign markets
False
Are the most usccessful GPN’s open or rigid
A rigid core of trusted associate firms supported by an open array of second tier suppliers
In what 4 ways can a local firm upgrade its position in a GPN
through better processes becomming a teir one supplier, through the development of more sofisticated products, taking on new functions like marketing and R&D or moving into new industries through intersectional upgrading
What challanges are there to moving up the value chain
Barriers of entry to higher tasks, overdependency on large customers hindering diversification and challanges associated with moving away from once particular localle
What is the core of a GPN
The different firm interactions, functions that develop a consumer good or service from raw inputs
What are the four core relationships in a GPN
intra-firm, inter-firm, firm place (state) adn place-place
In a hierarchy model of governance all parts in a process are vertically integrated by one firm
True
What three characteristics do all TNC’s have
They coordinate and controle GPN’s transnationally, they cna take advantage of geographic differences and they themselves are geographically flexible
Are production networks teritorially specific
No they stretch between different territories and switch quite a lot
What is territorial embeddedness
When the characteristics of a place such as resources, suppliersm services, humans and mateiral as well as the regulation leads to things being lost when uprooting
