Complexity In The Global Economy Flashcards
What does TNC stand for
Typologicaly defined networks
What are tye macro structures of the global economy
The institutions, conventions and other socially constructed rules of the current market system
Macro structure vonventions are territorially bound
Yes, to a large degree, f.ex laws and institutions of a country and its culture
What does gpn stand for
Global production network
What is the core of a gpn
The part that transforms inputs to outputs
What is the dual role of services in a GPN
That services are often also produced in gpns but that many products rely on advanced business services such as brand creation and RND for their processes and coordination
Which service coordinates GPN’s
Logistic services
How is financialization defined
The increasing role of financial motives, markets and actors as well as financial institiutions in the operation of the domestic and international economies. This has manifested in the increased emphasis on shareholder value maximization in the short term
What are the five actors in a TNC that shape it
Coorporations, states, civil society organizations (NGO?), labour and consumers
What is a major detriment to the power of labor compared to capital
It is less mobile and often nationbound f.ex labour unions have little power in the decition to close down a plant in a country.
Are we moving towards a world where consumers are the same no matter the geography
No, geographic consumer diveversity is as wide as ever.
What determines the power of an actor in a GPN
Their controle over key resources and their territorial range and flexibility
What are generalized clusters
A big city, a concentration of economic activity for no particular reson other then its shear gravity
What keeps economic clusters together
The ability to get face to face contact with those you need, social and cultural interaction as wella as synergies in knoledge and and innovation
For there to be FDI the investor must gain a degree of controle over the thing invested in
Yes, so just buying stocks in another market is not FDI
TNC’s are private enterprices
False, they most often are but they may be state owned. The important thing is that they exercise controle over a supply chain abroad
Name the five actors on a GPN
TNC’s, States, NGO’s (CSO’s) Consumers and labor
Describe a GPN characcterized by hierarchy
The closer to customres the higher power so transactions can be complex but the capabilities of suppliers and the ability to codify transactions are low.
Describe a captive GPN
A gpn almost entierly controled by a firm which allows for complex transactions and a high ability to codify them but the supplier capabilities are low
Describe a relational GPN
Strong connections between firms allows for complex transactions and high capabilities of suppliers but low ability to codify the transactions while power assymetry is medium
Describe a modular GPN
Where high capability suppliers are few and have the capability to adapt to the needs of the upper firms leading to complex trnasaction but high ability to codify them and low power assumetry
Describe pure market GPNs
Swithcing costs are low and relationiions between firms are shallow leading to low complexity transactions but relative ease in codifying them. Supplier capabilities are high as they are independent and power assymetry is low.
What are the main inputs to a GPN
Tech, energy, services and logisics
Name some external factors influencing a GPN
Regulation and financing like investment and banking
